Have a read of the link above to get some insight into what you are investing in.
I was lucky to get loaded up at $2 so have enjoyed significant capital growth and the dividends. From here it will be all about stable dividends and just 4% capital growth so don't expect that share price to increase any further. Dividends expected to rise from fy25 6.3% to fy27 6.7% but with franking credits reducing over time.
From Morgans analysis.
Investment view
We endorse an ADD for DBI, with a $4.13 DCF-based target price and 23 cps DPS guidance for the 12 months to June 2025. EBITDA growth is driven by CPI-linked base charges and incremental earnings on commissioned NECAP projects. DBI benefits from attractive risk mitigants (100% take-or-pay, revenue socialisation, force majeure protection, direct opex pass-through). We think the stock appeals to investors seeking yield and defensive elements for their portfolio. Potential share price catalysts are value accretive organic capital investment, takeover potential and release of the coal ESG discount. Key risk is a value dilutive capital raising and/or M&A.
Price catalysts
2025 March CPI. 2025/26 DPS guidance provided around the AGM in May.
DBI Price at posting:
$3.93 Sentiment: Buy Disclosure: Held
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