SPEAKING of dividends, TheSPECtacle was quite enamoured with the payout policy of HOLDSPORT – the old Moresport business sneaking back on to the JSE in a slightly different guise. According to its voluminous pre-listing statement, Holdsport’s directors currently envisage the total annual dividend will be covered 1,8 times to two times by core headline earnings. That’s a rather generous payout policy, and if Holdsport performs like its pre-listing statement suggests then even TheSPECtacle (always looking for an attractive income stream) will yield to temptation.
For the record, core headline earnings came in at 415c/share in the year to end-February 2011. If we take the liberty of pencilling in a 4000c share price on listing, then the historic yield is a rather nifty 5%. That’s right up there with the Foschinis, Mr Prices and Truworths of the fashion world.