MTS metcash limited

0.25%

$4.01

News: MTS Metcash To Raise Target Dividend Payout Ratio To 70% Of Underlying Profit After Tax, page-8

First 8 Last

Share
Profile

Follow
Jonnycage

1,354 Posts.

137

17/03/21

10:34

Post #: 51826969
Share

Originally posted by psi81: ↑

Interesting market reaction. I haven't bought any new MTS since 2012 but I doubled my holding today.

At market close yesterday ($3.53), 60% payout ratio was going to be around 15.5c for the full year for a yield of 4.4%. Now with the drop in SP to $3.37 at time of posting and payout ratio up to 70%, the div should be about 18c and yield rises to 5.3%, or 7.6% with franking.

And they say it's "effective FY21" which seems to imply the upcoming dividend should be about 80% payout ratio to get the full year average to 70%. If so that would be a 10c final div. Heaps of excess franking credits too so it is looking like a good income opportunity here IMO.

Obviously there are risks particularly in Food, around losing more customers like Drakes and the risk that the gains due to COVID might not be sustainable as the big players ramp up to try and win back market share from IGA. But the other pillars form a lot more of the total EBIT than they did even 5 years ago so they aren't quite as dependent on growth in Food as they used to be, and I do think they're finding a niche in Food too, with the Diamond program. They are switching focus from IGA stores being smaller, more expensive versions of Coles to offering a more boutique style store. And now they're switching the lessons learned into Hardware and Liquor as well with similar programs.

All in all there might not be much opportunity for big growth here but it does seem a pretty efficient way to harvest franking credits.

Expand

Agreed, picked up more yesterday at $3.40

MTS Price at posting: $3.49 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

ETM

As Trump-Greenland hype dies off, Energy Transition buys a niobium project in Spain

LTR

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

LIN

Lindian jumps 8pc after being awarded full costs as Deep Blue Sea case thrown out

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

NEU

Neuren Pharma jumps on DAYBUE sales win; short sellers' report now history

MQR

'We're extremely encouraged': Marquee expands footprint at Mt Clement

XRG

The market just found its latest defence play: XReality up +45% on Texas contract

TMG

Trigg moves into US defence-heavy tungsten space with market reaction mixed

First 8 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last $4.01		Change 0.010(0.25%)		Mkt cap ! $4.405B

Open	High	Low	Value	Volume
$3.99	$4.02	$3.98	$5.863M	1.463M

Buyers (Bids)

No.	Vol.	Price($)
2	4624	$4.00

Sellers (Offers)

Price($)	Vol.	No.
$4.02	45986	12

View Market Depth

No.	Vol.	Price($)
2	4624	4.000
3	22332	3.990
1	14562	3.980
4	24500	3.960
6	16007	3.950

Price($)	Vol.	No.
4.020	45986	12
4.030	17550	7
4.040	15113	5
4.050	76101	16
4.060	8610	2

Last trade - 16.11pm 08/08/2025 (20 minute delay)

MTS (ASX) Chart

News: MTS Metcash To Raise Target Dividend Payout Ratio To 70% Of Underlying Profit After Tax, page-8

As Trump-Greenland hype dies off, Energy Transition buys a niobium project in Spain

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

Lindian jumps 8pc after being awarded full costs as Deep Blue Sea case thrown out

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

Neuren Pharma jumps on DAYBUE sales win; short sellers' report now history

'We're extremely encouraged': Marquee expands footprint at Mt Clement

The market just found its latest defence play: XReality up +45% on Texas contract

Trigg moves into US defence-heavy tungsten space with market reaction mixed

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

News: MTS Metcash To Raise Target Dividend Payout Ratio To 70% Of Underlying Profit After Tax, page-8

Top Stories

As Trump-Greenland hype dies off, Energy Transition buys a niobium project in Spain

Liontown locks in $266M placement to help cashflow, Kathleen Valley ramp-up

Lindian jumps 8pc after being awarded full costs as Deep Blue Sea case thrown out

ASX Market Close: Health Care stocks lead index lower | August 7, 2025

Oz will likely unveil commodity price supports, but don't expect Trumpian flare

Thursday's HotCopper trends: $266M LTR placement, Trigg expansion | Aug 7

Neuren Pharma jumps on DAYBUE sales win; short sellers' report now history

'We're extremely encouraged': Marquee expands footprint at Mt Clement

The market just found its latest defence play: XReality up +45% on Texas contract

Trigg moves into US defence-heavy tungsten space with market reaction mixed

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News