Engineering and property services company UGL has been struggling with the mining downturn

Engineering and property services company UGL has been struggling with the mining downturn. The company isn't paying shareholders a dividend, but with the sale of its property division that is about to change. Shareholders can look forward to a capital return, and a reintroduction of dividends, from what should once again become a focused engineering business. After the sale, UGL will debt-free. In lieu of a possible capital return, the company decided not to pay a final dividend. But it says post-sale it will be able to implement a clear dividend policy based off stable engineering earnings and the low capital intensity of the business. UGL must have built up its franking account; so when dividend payments are restarted it should generate a fully franked dividend of 4-5%. Read the full report: (VIEW LINK)