on $30m pbt it is a dividend yield of 12% inc franking credits after dilution.
assuming they pay off the debt with a cap raising and they get the synergies of 13mil a year, they'll have a pre-tax income of $40mil in FY16. that creates an eps of $0.19. Lets assume dick continues his 100% dividend policy, they'll deliver a 16% dividend yield including franking credits in FY16 after dilution. He might go worse and he might go better but odds on I'd say most probable outcome is as forecast.
The only real variable is what price they raise capital at. I'm hoping they'll aim for $2.50. That will be 7% yield which i think is a fair price for a company with such strong growth prospects.
DDR Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
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