shares offer 20% return

On tuesday 17th Feb UGL announce their 2Q results. I expect a profit increase of 15% for the half year and 12%for full year FY09. Assuming UGL maintain their policy of 70% payout ratio i estimate one can earn dividend return+franking credits equal to 20% on current SP of $7.oo.

Q209 div of 28c
Q409 div of 38c
2Q10 div of 34c
total div of 100c over the next 54 weeks.

Depositing the first 2 divs in bank at 4.5% results in an extra 2.12c by end feb 2110. Add on the franking credits and the total return equates to 144.12c over 54 weeks.

On SP purchase of $7.oo this equates to annual return of juuuust over 20%. Ignores any change in SP.

SP slide over past week is a worry. Will top up at current price and just sit it out till tuesday. looks like being a sloooow 6 days!!!