yield is the new black

Nice line from the latest free FN Arena Weekly Update which talks a lot about AAD.

I'll confess to having trimmed my AAD to an extent in my trading account but it is a long term holding in my super fund.

Not sure it will get back to $1.00 Legume but I will be ready to munch it up if it does.

Extract from FN Arena:

"Let me introduce you to a very good friend of mine in the Australian share market; Ardent Leisure ((AAD)).
On face value, there's little to like about Ardent. Its theme park operations are in Queensland while marinas are going through their own boom-and-bust cycle. Add bowling centres and gyms and it should be no secret as to why Ardent is not high on most investors' wish list. Consumer spending is lagging historical averages in Australia (not to mention the US where Ardent also has operations) and the strong Aussie dollar is keeping tourists away.
Further adding to the apparently non-attractive picture is the fact that the price of Ardent Leisure shares fell to $1 late last year, the same level as twelve years ago. This is still better than the declines recorded over those twelve years by Harvey Norman ((HVN)), Fairfax Media ((FXJ)) and the likes, but regardless, investors like to think their investments in equities appreciate over time and Ardent Leisure has little to show for itself on that measure.
Except, of course, that Ardent Leisure has a lot to offer, which is why it has become one of my best friends in the share market. It's not something that can be read from price charts as these do not reflect the dividends that have been paid out to shareholders. Appreciating what Ardent Leisure has to offer is appreciating that the overall investment climate post 2008 has changed.
In line with several other steady dividend payers in the share market, Ardent Leisure shares have since January risen from circa $1 to above $1.30. Even if some of these gains will prove unsustainable in the weeks ahead, this still makes Ardent Leisure one of the better performers in the market post-2008.
So what's the secret formula that makes Ardent Leisure so successful? It's as simple and as straightforward as can be: solid, sustainable and growing dividends. Even with the share price going nowhere (prior to the recent surge) shareholders still enjoyed double digit dividend returns in each and every year post the March 2009 low. And each and every year those dividends have been increased.
Mind you, the dividends are not franked, further adding to the seemingly unattractive proposition, but contrary to a much more popular dividend stock called Telstra ((TLS)), Ardent Leisure shareholders do not anticipate receiving 28c year after year after year after year. Two years ago (FY10) Ardent Leisure shareholders received 11c. Next year (FY13) the annual dividend is forecast to increase to 12.6c.
As such, Ardent Leisure is one fine example of how dividend investing should be done as the yield/return on the original investment made steadily increases for as long as investors own the shares.
Investors with a quick mathematical mind would have picked up that the prospective yield has now fallen into single digits, even on the prospective FY13 dividend. This is, of course, directly related to the 30% increase in share price. FNArena's Stock Analysis shows the share price is now within reach of the consensus price target.
Personally, I would not recommend chasing the shares at this price level but I also question whether we will see the shares back at $1 anytime soon. As I have pointed out on numerous occasions in the past, yield has become the new black in the share market and I still believe the underlying trend towards yield on a global scale is only in its infancy, which means that natural support for dividend champions such as Ardent will only solidify further in the years ahead."