Sport­ing dec­la­ra­tion

Finweek English Edition - - COMPANIES & MARKETS -

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.

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