Thursday, 9 June 2016

JAYCORP - Potentially a good dividend yield stock?



For the past 5 years, JAYCORP has been quite generous in dividend payouts, with an average dividend payout ratio of 74%.

It recorded strong growth in EPS in 1HFY16. The 6 months earnings have already exceeded full year earnings achieved in FY14 and FY15.

If we annualise the EPS and assume a dividend payout of 50%, this translates into DPS of 8.45sen. At current share price of RM1.04, it offers an attractive dividend yield of 8.1%.

Annualise the EPS, the stock is trading at an undemanding PE multiple of 6.2x

As of Jan-16, it was in a net cash position of RM6.1m.

No comments:

Post a Comment