sorry i forgot 2 things their franking rate is 100% on divi's (not 30% which is the company tax rate), so the actual divi of 2c is grossed up to 2.6c.
secondly, their divi growth for 2016 cf 2015 was 22% and so 2c plus 4c is actually conservative, it could grow easily to 6.25c or even 6.5c, which grosses up to 8.5-9c, an outrageously good dividend that will certainly generate some attention in the market.
the other thing they should consider, given their massive cash reserves, is a share buyback or a synergistic earnings accretive acquisition rather than hiking the dividend further. personally i would prefer this option as i think a grossed up divi increase beyond current levels creates less confidence in investors than a buyback or smart acquisition.
BFG Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
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