BST discussion thread, page-60

Not sure this is going to break out and be valued appropriately for a while. You can see quite a lot of retail shares once on PE ratios from 12-15 really be pushed back down to 6-10 Zone. Should a company be able to maintain sales and currently be in that 6-10 zone a re-rating most likely will occur. When? Who knows? The macro will dictate this.

The one thing that did stand out was the specific mention that the dividend is equal to a 9.6% annualised return. My experience with these comments is that the dividend will now be equal waited, meaning a 16c FY23 dividend and this can sometimes have a range bound effect on trading. A second half dividend of 8c on their expected NPAT puts the payout ratio at 60%.

As I see it the key to buying here or topping up is “timing”. A buy at 1.70,1.60 or dare I say lower may lock you in a a 9.4, 10.0%, ++ return this year but this if they hit their second half targets could easily turn into 11.5-12.5% with a return to an annual dividend of 20c. In other words “timing” can make this a long term dividend beast without factoring in any growth. Growth well that would be a bonus. DYOR.