interest rate hike, property sales under more pressure. DRP price no discount to current price at 1.63. might as well take the cash and look for better bargain. e.g. Maybank, also high div & will benefit from interest rate hike.
Premium valuation becos of 1. Reputable management 2. Their product quality good, rarely hear their housebuyers complain kao kao 3. Steady+generous dividend yield/policy
Yes, RM0.10 / share just paid out. If they are paying interim of RM0.20, it seems they are expecting better times ahead. However, UOADEV has about RM0.92 in net cash / share, payment of extra dividends is not an issue... ;)
As a dividend investor who owns both UOADEV and UOAREIT, I am extremely happy that UOADEV will now pay for the first time, a 20 sen Interim Dividend in addition to its annual once a year "First and Final Dividend" which will no longer be a "First and Final". I cannot imagine how they can pay 20 sen + 10 sen Final = 30 sen Dividend when my cost price is only 1.59 excluding past dividends received. The dividend yield is unheard of! Wow, wow, wow!!!
Most impatient investors don't like stocks that pays once a year dividend, but I love it when I own 40+ diversified stocks! Now, looks like it's wanting to change to 2x per year dividend payments, which is also okay with me. Nice!!
With hindsight, this is a stock one should have loaded up during uncertain times. This company has almost no debt and is in very nice Net Cash position. When revenue declined, because its Finance costs is negligible, it continues to be able to keep its PAT a very nice positive. It has a war chest that it is now utilizing to reward shareholders to make itself leaner and more agile. This is the right way.
Many people don't realize and think all property developers are identical. They are not. Those that has the highest gearing also has the highest risk. This company is very well managed financially and deserves the spike in price. The brand name is well recognized, when foreigners come back, they will gravitate towards recognized names like UOADEV and UOAREIT.
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Posted by fanad123 > 2021-06-29 18:18 | Report Abuse
Better take cash or participate drp??