I don't think it's anything to worry about. The buy-back will almost certainly be approved IMO, so in the next few months WPL is suddenly going to find itself with about 10% fewer shares on the register. Earnings, dividends and yield will all go up 10%, and WPL has confirmed they will continue paying out 80% of underlying earnings, which will be substantial, with Pluto chugging along and this Iraq stuff going on which has given a (small) boost to the oil price. WPL's LNG contracts are still oil-linked so I think earnings may surprise slightly to the upside anyway, even before the buy-back takes effect.
In addition, the overhang is now gone, and regardless of whether you think this makes WPL a takeover target, it certainly doesn't make them LESS of a target - it is either positive or has no effect.
So I think in the next few weeks to months, we'll see the SP trend up to make back that 5% and then up at least another 5%, possibly 10%. Trailing yield is now 6.6% as of yesterday's close (including one special div), which after the buy-back will be 7.2% fully franked - absolutely insane yield for a blue chip oiler.
Even without the special div it's 5.6% post buy-back. With 80% payout ratio going forward I don't really see WPL staying at these levels going forward.
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Last
$29.26 |
Change
0.030(0.10%) |
Mkt cap ! $55.55B |
Open | High | Low | Value | Volume |
$29.25 | $29.37 | $29.14 | $82.84M | 2.833M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 30080 | $29.25 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$29.27 | 1356 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 34 | 29.250 |
1 | 100 | 29.240 |
7 | 6556 | 29.200 |
3 | 2513 | 29.190 |
1 | 285 | 29.180 |
Price($) | Vol. | No. |
---|---|---|
29.270 | 29 | 1 |
29.340 | 200 | 1 |
29.350 | 1501 | 2 |
29.370 | 2673 | 1 |
29.380 | 112 | 1 |
Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
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