Ann: NRW FY14 Results - Press Release, page-13

Thanks for that. I bought another NWH 35,000 today at $1.075 for my SMSF portfolio.  My logic is  that:

• with a high degree of certainty I hold that the DPS can be maintained at 9c, which is (9c/107.5c)/.7 =12% yield for the SMSF; and
• in the future, NWH is more likely to do better than worse.

If the revenue forecast is the same as for FY2014, then the underlying EPS should be roughly the same, and the statutory EPS perhaps better, because of the $4.8 goodwill impairment in FY2014.  Tax may be higher, because NWH obtained tax credits in FY2014.  Anyhow, with lower CAPEX, a stronger balance sheet, and a good cash flow, NWH is free to set the dividend payout ratio to whatever is reasonably required to deliver 9c. Philosophically, it does not matter to me if NWH does not hold the dividend at 9c, as long as the funds are used in a manner that is at least as advantageous to shareholders' long-term interests.  Of course, its still a punt.

I sold out my QBE holding to fund the purchase.  I have held QBE for many years, and I bought it in my first foray into investing in 2007.  It's been a dog, so I made a capital loss.  So much for Blue Chips.