Great analysis David808. Thanks for your insights and posting.
Whilst there may be uncertainties about actual future realisations, I would like to focus on the franking account and the capacity of SDG to pay fully franked dividends going forward.
As at 30 June 2021, SDG had $74.3m of franking credits. Note this is after providing $11.7m for the post balance date dividend of 20cps to be paid tomorrow.
Of course the franking account will increase as SDG pays future tax, but I have assumed this to be relatively modest based on the tax actually paid in FY21 and the capital losses carried forward but not recognised. But any future tax paid will add to the franking account.
The franking credit balance of $74.3m translates into capacity to pay approximately $173.5m in fully franked dividends at 30% or approximately $1.27 per share. This is some 43% higher than David808's estimate of 89cps in franking credits.
David808 I would welcome your thoughts in case I have missed something or my arithmetic is just plain wrong.
DYOR IMO
Claire
SDG Price at posting:
$2.37 Sentiment: Buy Disclosure: Held
