Based on yesterdays closing share price of $6.90 the "likely" DIV payout for KOV for calendar 2013 represents at least a fully franked 7.536%. The company currently has a policy of 100% dividend payout.
On the 24th of Jan 2013 the Directors announced a fully franked interim dividend of 26.0 cents per share. The dividend will be paid on 13th March 2013. The record date is 27th February 2013.
And also stated; "As a result of stable day-to-day trading, the second half performance is expected to be an improvement on the first half albeit broadly consistent with the last two half years". and; "Whilst the national outlook for construction remains subdued compared to recent years, there are still some sizable projects being undertaken around Australia requiring Korvest products and accordingly this provides some potential in the event that Korvest secures contracts from these projects". So, if they only match the current half figure and pay 26c (that is 52c for the calendar year) it represents a yield of 7.5%. With upside potential.
There are of course a couple of assumptions made here. 1) That they make the projected profit figure. 2) That they continue with the 100% Div policy.
KOV Price at posting:
$6.95 Sentiment: LT Buy Disclosure: Held
