CMW is a solid stock which pays a div every quarter.I bought in...

CMW is a solid stock which pays a div every quarter.

I bought in during February 2013 with a simple 544 shares @ 92c p/s

$500.48 + $19.95 brokerage fee (total shares = 544 shares)

Took up a shareholders offer of buying shares @ $1.00 p/s, I bought 256 shares @ $1.00 p/s = $256 (no brokerage fee for this one)

Total shares = 800 shares @ $776.43

Bought a few more in February 2014

654 shares @ .98c p/s

$640.92 + $19.95 brokerage = $660.87 for 654 shares

Total shares now = 1454 with a total outlay of $1437.30

As the company pays divs per quarter,I have received so far:

$9.86 (Q1 2013)

Some time after Q1 2013, I signed up for the dividend reinvestment plan and I didn't receive any other cash dividends as a result. I now have 1500 shares now though (up from 1454).

Therefore the figures are now from an outlay of $1437.30, my equity is 1500 shares at the current price of 98.5c per share + the $9.86 div payment from last year

$1487.36 - $1437.30 = $50.06 profit after about 15 months.

Not the greatest, but thought I would show some figures in case anybody interested in buying into CMW. The $40 in brokerage fees obviously chewed into my profits alot.

There's also the Q1 2014 dividend payout due in 2 days from now, which will give me exactly 30 new shares from the DRP and take my holdings to 1530 shares.

What is a realistic outcome by the end of 2014?

Share price of $1.00 per share, and another 90-100 shares from the next three quarterly dividend payouts

If that were to take place, 1600 shares at $1.00 would net me about $160 on my $1437.30 initial outlay, not the greatest in the world after 24 months, but I can think of far more worse stocks to invest in! :)

That $160 profit (should it come to pass in December 2013), would represent an 11.1% return in 24 months or just over 5.5% per annum, which is fairly standard to be honest.

Dividends over the last 4 quarters have almost increased each time and there's every indication that it will be pushing close to 2c per share by the end of the year:

1.8125c
1.875c
1.875c
1.9375c

From the half yearly report in February 2014:

Operating profit increased 59% to 73.2 mil

This was helped from the sale of existing properties (for a profit of course)and all in all, they appear to be a fairly stable and sensible company who enjoy paying a quarterly dividend to its shareholders.

Provided they continue to be sensible in their decisions and continue to grow their assets and keep minimal amounts of risk, there is no reason for the share price not to trend upwards towards $1.10 over the next 2-3 years.

It rarely fluctuates heavily from my observations over the past 15 months or so. Mainly between 97c and $1.00. I like the stock personally, it appears to be a defensive pick but obviously due to low movement in share price gains, brokerage fees really eat into profits, but the quarterly dividends and the DRP make this an attractive long term investment imo.

Anything around the 96c-97c mark is a great entry point and I do think we will see the share price stable around the $1.02 mark by Christmas with a dividend payment of around 2c per share.

Good luck to holders and here's to hoping for 1.20 share price in the next 5 years :)

I must have at least one safe stock to offset my OBJ and IDC shares ;)

-b2r