Saturday, February 19, 2011

Dividend Analysis - Mamee


Over the past decade, Mamee (MDD) has delivered an annual return of dividend growth to its shareholders, 28.21%, and dividend payout has grown annual by 24.67% p.a. Up until FY2010, theres no dividend policy, so for its dividend to grow at double digit growth, is very good and impressive to me.

Now, with its dividend policy of at least 50%, it will be much easier for shareholder to calculate how much return they could earn over the year. With this policy, we can see that Mamee now more committed toward shareholders, just like F&N back in 2000s. MDD has started to emphasize on health and wellness, and has worked to minimize the amount of trans fats in its snack foods (Rice Crisps), and focusing on healthy beverage product such as juice. If im not mistaken, more healthy product will be launched in future. Future earnings growth should be positive due to strong consumerism and excellent product line, and could also come from synergies associated with venture in plantation, and cost cutting. Overall, other than growth stock, MDD also good to be considered for dividend investor as well.

DPS for FY2010 is done based on est EPS of 32.25 (151.33mil shares)

Payout Ratio FY2010 is est 50% (being conservative)



No comments:

Post a Comment