Two dividend stocks Venture and Elec, both technology stocks that pay good dividends announces weak earnings.
Venture is tracked on my Dividend stock tracker while Elec is tracked at my 20 small caps for 2013.
Venture
Report here and here
Venture’s profit was weaker but more or less attributable to inventory costs building up. Revenue was down for the period (7.6%)
Overall net profit was 27 mil versus 35 mil last year.
Venture outstanding shares: 275 mil
Expected dividend per share: $0.50 (at $7.55, dividend yield is 6.6%)
Required cash flow for dividend: 137 mil or 34 mil per quarter
Venture gain a lot from exchange differences. I will say they barely scraped by their cash flow to pay for this full year dividend. Annualized dividend is around 112 mil.
Elec & Eltek
Report here
EBITDA was down 8% which is large but still ok. Net Profit was down 28%! That is massive. It looks like the China circuit board demand remains weak.
Basic earnings per share is USD$ 2.14 cents down from USD$ 2.97 cents.
Annualized its USD$ 8.56 cents.
At a last price of USD$ 2.26, this translates to a yield of 3.7%
Wow that is a steep fall off in yield if this is really the case.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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