Dividend payout signals company performance…
10-MONTH RECAP
Investors continue to seek short-term gains and chase high
dividend yielding stock in the seemingly perpetual current
low interest environment. Dividend yields of the cross-listed
stocks continue to lead and rise as Jamaican stock prices fall.
Jamaican Money Market Brokers (JMMB) has announced
a JMD0.16 dividend payment, payable on 18 December,
reflecting a 23.1% increase from the prior period 2012.
This increase in dividend payment echoes the improved
performance by JMMB. The JMMB group posted a net profit
of JMD1.60 billion, decreasing by 37% when compared
to the same period September 2012. A closer look though
reveals that net profits in 2012 were higher due to gains from
acquisition of The Capital & Credit Financial Group (CCFG)
of JMD1.61 billion. The Group’s operating earnings excluding
this one off gain reflected a positive increase of 71.8% or
JMD669.5 million.
Guardian Holdings Limited. (GHL)
Conversely, National Commercial Bank of Jamaica (NCBJ)
reported net profits of JMD8.5 billion, a decrease of 14.9%,
or JMD1.5 billion. Earnings per share fell from JMD4.08 to
JMD3.47. Operating expenses increased by JMD5.5 billion
or 24.4% in the year ended 30 September, 2013 mainly as
a result of increases of 158.3% or JMD2.3 billion, in policy
holders and annuitants benefits and reserves, related to
the acquisition of Advantage General Insurance Company
Limited (AGIC) on 19 February, 2013. The latest declared
dividend was JMD0.16, a significant drop from last year
payment of JMD0.64 for the same period 2012. NCBJ’s
pay-out ratio currently stands at 18%, significantly below
last year’s pay-out ratio of 34%. The implementation of
dividend payout is in stark contrast to JMMB and reflects both
company performances.
Figure 12
Highest Yielding Stocks as at 11 November 2013
3.50%
4.50%
5.50%
6.50%
7.50%
8.50%
8.42%
NFM
5.75%
NCBJ
SIJL
5.42%
CIF
4.09%
NEL
4.06%
Source: TTSE, First Citizens Research & Analytics
9.50%
Trailing P/E: 13.58
Trailing Dividend: TTD0.52
Trailing EPS: TTD1.10
Dividend Yield: 3.48%
52-Week High: TTD19.98 52-Week Low: TTD14.00
Nine Months Ending 30 September 2013
• Gross Premiums Written (GPW) rose by TTD129 million
or 13.57% to TTD1.08 billion, compared to third quarter
ended 2012 due to strong life insurance sales and new
acquisitions.
• Profit after tax for the nine month period amounted to
TTD197.7 million, a 35% decline from the corresponding
period 2012, which recorded profits of TTD301.8 million.
This decline was attributed mainly to challenges in
investment activities. The first quarter was adversely
affected by the Jamaican Debt Exchange and fair value
movements in the second quarter, that amounted to a
loss of TTD73 million.
• Total assets remain strong increasing by TTD492 million
or 2.2% to TTD22.9 billion due to a 28.6% growth in
reinsurance assets.
• Dividends per share for the nine months ending
September 2013 amounted to TTD0.52 representing
a payout ratio of 47%, marginally more than the 40%
paid out in the same period 2012 as earnings per share
decreased to TTD1.10 in 2013.
• GHL’s share price is down 19.24% year-to-date as at 19
Nov 2013, trading at a 52-week high of TTD19.98 with a
total of 3.1 million shares trading to date.
The main reporting segments of the Guardian Holdings
Limited include Life, health and pension business, Property
and casualty business, Asset management and Other
companies. The Life, health and pension business/Property
and casualty business are the largest segments, accounting
for 26.7% and 29.5% of total operating profits respectively.
For the year to date June 2013, Life, health and pension
business has generated TTD101 million in operating profits, a
decrease of 45.5% compared to the same period last year.
Scotiabank Trinidad and Tobago Limited (SBTT):
Trailing P/E: 23.3
Trailing EPS: TTD3.09
52-Week High: TTD72.05
Trailing Dividend: TTD1.80
Dividend Yield: 2.50%
52-Week Low: TTD65.00
Three Months Ending 31 July 2013
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