Capral on track to resume dividends for FY16
The balance sheet remains strong, and the company won’t have to pay tax for many years, thanks to accumulated grossed-up tax losses of close to $290m. This, coupled with modest CapEx requirements, should result in strong cash generation. The company has paid no dividends since 2004, but appears on track to consider a final dividend at the FY16 result (December year-end). Assuming a conservative 50%
payout of FY16 free cash flow, the stock is yielding over 8% at a share price of 17.5c.
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