It's a bit of a strange story with more of BSLs revenue being generated offshore and lower domestic profits limiting the amount of fully franked dividend that can be paid. Forecast dividends are $0.50 per share which is only around $125million outlay per year and yet profits have been at least $1 billion dollars over the last 4 years. Sure, there are the buybacks however I don't think we are seeing the value of those transfer int o an increased share price. Remember that leading into the GFC BSLs MC was $25billion and now we are a much better structured company and yet MC is only $10 billion. I suppose back then the vast majority of BSLs profits were generated in Australia and very high franked dividend were being given out.
Anyway, I believe the low dividends will limit how high the share price will go with much higher yielded investments out there. I do hope it gets to $25 because that is when I start selling.
BSL Price at posting:
$22.37 Sentiment: Buy Disclosure: Held
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