When I do my analysis of stocks, if I am buying a stock that pays dividends, I like to see that the yearly cashflow is higer than the cost of dividends + capital expenditure. (I realise that this isn't always possible through the business cycle), but it is part of the icing that I am looking for. There are a few nice cakes out there in ASX land, but some have nice bits of icing all over them.
In the last 10 years, UGL has achieved this 7 times (1 flat year, and 2 below years).
What is even more impressive, is that in this 10 year period, on a per share calculation, the total cash flow - div - cap spend = 78c (approx). This is almost 1 whole years earnings!
Oooooh this cake tastes so good. I would love to take another bite!
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