Decided to have some fun and did some research to come up with...

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lbao2k3

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19/09/17

13:00

Post #: 27315126
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Originally posted by The Wild Man ↑

I haven't titled this thread as an attempt to up ramp SMN but rather to draw attention to an interesting angle of the stock which hasn't been discussed at length yet.

Management have stated their desire that SMN reach the status of the "highest dividend stock on the ASX". I'm interested to know exactly what territory that would put us into in terms of yield percentages. To the best of my limited knowledge most of the better yielding stocks pay in the 5-8% (rough estimate with no research done to back it up) but I would be interested in other people's input in this area.

What are the top yielding stocks paying in terms of yearly dividend anyway ?

The reason it's of interest is the fact that SMN down the road a few years is likely to be a company with massive revenue and comparatively minimal expenses. The costs of production of each sensor is probably in the tens to low hundreds of dollars (pure guesswork is $50-$200) and the asking price has been variously quoted in the low thousands of dollars ($1000 - $3000). That's potentially a markup of between 400% and 5900%.

Similarly the eventual full licencing fees in 6-7 years ($US 10-15 million per tier 1) is massive revenue with basically minimal expenditure aside from wages and legals to oversee contracts etc. The cash coming in annually COULD potentially be in the hundreds of millions of dollars while the outgoings are likely in the very low millions of dollars.Unless SMN has some intention to somehow expand into other areas via takeovers etc there's likely to be a sea of spare cash in the coffers. Dividends from this sea of cash could be humongous.

My question is firstly...have I missed something? And secondly... just how large could a declared dividend get in a company with massive revenue and minimal expenditure ?

I'd be interested in any opinions or analyses plus any MAJOR outgoing costs I've missed.

NB: The importance of a declared dividend is that it provides an income stream (which is potentially fully franked/tax paid) for the shareholder without the need to sell any shares and thereby lower your value base of the owned shares. Money for old rope.

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Decided to have some fun and did some research to come up with the highest dividend paying stock on ASX.

I have excluded the below for obvious reasons:
- one off special div
- one off high div in the past but nothing declared in 2017

Ah, also disregarded franking percentage.

The winner is: REF - REVERSE CORP (Returning 10-12% yield for the last three years and looks like it is going to continue for the next 2 years at least)

CUP is a close second.

The list of stocks that I have also considered but excluded are: MRC, AIB, CDC, CAF, USF, TTC, AYJ, IPE, CAB, LTN

Disclaimer: I am a holder of REF

SMN Price at posting: $1.54 Sentiment: Buy Disclosure: Held
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(20min delay)
Last 38.5¢		Change 0.010(2.67%)		Mkt cap ! $52.67M

Open	High	Low	Value	Volume
38.0¢	38.5¢	38.0¢	$3.997K	10.38K

Buyers (Bids)

No.	Vol.	Price($)
1	9999	37.5¢

Sellers (Offers)

Price($)	Vol.	No.
38.5¢	9374	1

View Market Depth

No.	Vol.	Price($)
1	9999	0.375
1	7000	0.365
2	3121	0.360
1	14084	0.355
1	1428	0.350

Price($)	Vol.	No.
0.385	9374	1
0.390	10000	1
0.395	58053	1
0.400	20500	2
0.410	20000	1

Last trade - 11.27am 07/05/2024 (20 minute delay)

SMN (ASX) Chart

Decided to have some fun and did some research to come up with...

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