somewhat surprising that increased divi, profits, revenue and...

somewhat surprising that increased divi, profits, revenue and further future growth prospects have failed to drove the sp considering the incredible yield.

i wonder if the fact that the hy interim divi is always small caught some off guard who expected higher give the annual divi is almost 10%.

the annualised divi announced in august should be around 6c (2c plus 4c) plus 30% franking which means effective divi is around 7c
ie over 10% if h2 profits continue to rise as expected (highly unlikely that any major downside the way the business is tracking).

perhaps we will have to wait until the feb results for the market to re price bfg at a fairer price of 80c+ but thats ok im happy to sit tight on my bfg holdings for another 6mo given it means i get the 2c divi with 30% franking (roughly a 3.5% cash in the bank return on any holdings)
then re pricing to around 75-80c in feb at which time i can cash the extra predicted sp 10% return (68c to 75c from now to feb is a conservative target given it reached 77c after feb 2017 results and feb 2018 results should be at least 5-10% higher)
also my capital gains tax will be lower having held for over 12mo (currently just under 12mo) so not much point selling for a modest gain now.
just my thoughts and analysis to share with fellow holders who are probably also weighing up holding for the next 6-12mo.

dont get me wrong, i maycontinue to hold for several years depending on the longer term macro/ cyclical outlook in 6mo time and depending on the company performance and guidance then. if they are continuing to grow earnings and sustain dividends with a massive cash position, i suspect the sp momentum will build and small cap fund institutions may start to buy in for the tantalising growth and yield combination.