Pakistan Pulse: (July-16-2013) Who will pay higher dividends? (July 16, 2013) With June end result season about to commence, investors are curious to learn about the firms that can announce higher than anticipated profits and dividends. Especially many investors have started to accumulate shares that can offer a higher dividend payout with their June end results. Cum dividend stocks Though exact date of board meeting and book closure are yet to be announced but many stocks are technically cum dividend, since their board meetings period is getting closer and dividend has started to build up in their stock prices Stocks that can pay high dividends We have based our analysis on Topline Universe companies and have tried to chalk-out those firms that have the likelihood of announcing higher dividends. We have considered firms having 4QFY13 or 2Q2013 dividend yield of 5% or more as high dividend yielding stock. At present, 5 out of 27 companies that fall in Topline universe offer this charm and out of them 3 belong to Attock Group, which is famous for its bumper dividends. The list of companies is led by APL (Attock Petroleum Limited), which is expected to offer 4QFY13 DY of 8%. APL having paid Rs50 and Rs41.5 in previous two fiscal year, respectively, has a history of making one and final bumper payout, as a result of which we expect the company to pay Rs45/share cash dividend. Following APL, 3 companies offer 4QFY13/2Q213 dividend yield of 6% each, these include, NRL (National Refinery Limited), which similar to APL has paid one and final dividend in the past 2 years. This trend will continue this year as well, where we expect the company to pay cash dividend of Rs15/share. HUBC (Hub Power Company Limited), having witnessed change in its fortune post partial resolution of circular debt is likely to pay Rs4/share dividend with its June result. Lastly, POL (Pakistan Oilfields Limited), which has historically paid higher dividends in second half is expected to announce Rs30/share final cash dividend. The list is completed with the inclusion of NML (Nishat Mills Limited). Backed by 57% earnings growth, the company is likely to pay June end cash dividend of Rs5.5/share. This translates into dividend yield of 5%. Regards Asad I. Siddiqui
Posted on: Tue, 16 Jul 2013 06:52:51 +0000
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