Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Tuesday, May 19, 2009

Money Flowing Into Plantation and Financial Sector

Plantation Index up 2.9% led by Sime
Financial Index up 2.3% led by Maybank

Someone highlighted to me that small plantation counter TDM paying gross dividend of 14 sen (net 10.5 sen), ex 23rd June- pay 21st July.
At share price of RM1.75 that's a neat 8%, better than ASM, ASW.
Mkt cap = RM380 m. Net profit = RM101 m. Shares Issued = 218 m.
Therefore EPS = 46 sen. Dvd = 14 sen.
Fundamentals: PE ratio = 4. NA = RM2.73
This is one buy and hold counter to place in your core portfolio. And sleep well.
Take the dividend year after year.

Compare this with my core holding of TH Plant, final dividend 7.5 sen, ex 6th May- paid 20th May
Mkt cap = RM 814 m. Net profit = RM83 m. Shares Issued = 487 m.
Therefore EPS = 17 sen. Dvd = 14 sen.
Fundamentals: PE ratio = 10. NA = RM 1.64
At current price of RM1.68, dividend yield = 14/168 = 8.3% gross

HS Plant. Final dvd 5 sen goes ex 1st June- pay15th June
Mkt cap = RM 1800 m. Net profit = RM130 m. Shares issued 800 m.
Therefore EPS = 16 sen. Dvd = 10 sen tax exempted.
Fundamentals: PE ratio = 14. NA = RM2.06
At current price of RM2.27, dividend yield (10/227) = 4.4% net
which is higher than bank FD

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