Buy @ $3.58, $3.57
A new addition to my portfolio. There was a surprise increase of dividend payout from 80% (stated policy) to 100% for FY14 (annc on 19-Jan). This equates to a Yield of 5%+ and share prices hit ~$4. xd on 17-Apr saw prices dropping fm $3.87 to $3.60, a lot more than Div = 11.9ct.
The stated CAPEX planned for FY15 ($120M : $94.7M committed as of end Dec-14, inclusive of $64M for 4G Rights) is much lower than FY14 ($140M + $40M for Spectrum Rights) and some analysts are expecting Payout to be maintained at 100% for FY15 (Yield = 4.223% if Payout = 80% vs 5.28% for 100%). Q115 results on 13-Apr saw EPS = 4.9ct, better than Q114 = 4.6ct.
Too early for Yield Rotations Play as 1H is for Jun Q. But, looks like can buy for longer term… Possible threat will come from IDA releasing a 4th TELCO license… 😀