I would go one step further. Given the divvy is paid within a...

I would go one step further. Given the divvy is paid within a couple of weeks, at 28.5c, you are really paying 26c for the stock with a FF div yield of 9.6% (so 12.5% grossed up). This assumes that the divvy is sustainable, but if it wasn't the Directors would be risking a lawsuit by providing misleading information. (As previously mentioned, if it wasn't sustainable they would have done a special divvy for part of the amount). Even if they just achieve the H1 result in H2 and tax rates normalise (they appear to have paid >30% tax in H1), they are on track for EPS of 3.23cps. This would represent a 77% dividend payout ratio. It would also mean a p/e of 8x at 26c. At 40c, this would still mean a FF divvy of 6.25% and a p/e of 12.8x. I also think that the market will start to believe in this company again after the results are released, which could mean that 40c is conservative. As you can probably tell, I purchased more of this today as this looks very cheap (at least IMO).