Capral on track to resume dividends for FY16

Perpetual Equity Investment Company

Perpetual Asset Management (Australia)

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. 

Article contributed by Perpetual Pure Micro-Cap Fund:  (VIEW LINK)


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Perpetual Equity Investment Company
Perpetual Asset Management (Australia)

The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.

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