From Affluence Funds Management:SANDON CAPITAL (SNC)SNC declared...

From Affluence Funds Management:

SANDON CAPITAL (SNC)

SNC declared a 2.75 cent fully franked dividend in August and stated their intention to pay the same amount for the next half year. This translates to a 5.5 cent annual franked dividend. They are also paying a special dividend of 1 cent for the full year, however as this is one-off, we have excluded it for this analysis.Based on the 31 August NTA of $1.19, this reflects a 4.6% net yield and 6.2% grossed up for franking credits. Based on the closing share price of $1.05, the dividend yield is 5.2% net and 7.0% grossed up for franking credits. SNC was trading at a 12% discount to NTA on 31 August, which is similar to its long-term average. They have 32 cents in profit reserves and have advised that this represents four years of fully franked dividend paying capacity. They are currently in the final stages of a capital raising, so this may have a short-term impact on the share price. But in general, we like the management team, the portfolio and the yield and the discount is OK.