Friday, 5 September 2014

Gtronic: No "Soft Hands" In Dividend Payout

Globetronics has just announced second interim dividend for FY14, which is 5sen plus a special dividend  of 6sen. The total 11sen is 22% higher than corresponding period last year.

This dividend will be ex-ed on 21 Oct 2014.

Gtronic usually pays dividends 3 times a year. Table below shows its recent dividend history.

Dividend FY14 FY13 FY12 FY11
1st 2(5) 5 2 1.5
2nd 5(6) 5(4) 5(2) 5
2(2) 2(1) 2
Total 18+ 18 12 8.5
Special dividend in (bracket)

Gtronic paid a total of 18sen dividend for its FY13, which is about RM50mil while its PATAMI for FY13 is just RM52.6mil. It's nearly 100% dividend payout!

If this trend is to be continued, it may pay at least 5sen for the final dividend of FY14, making it total 23sen (4.7% yield at RM4.94). This will bring the payout to RM64.6mil which is close to its guesstimated earning of RM70mil for FY14.

       Gtronic dividend history

Despite paying so much dividends, its cash is still piling up. It's a little cash generating machine indeed.

Anyway, Gtronic is currently actively looking for M&A. Will this affect its future dividend payout?

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