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.
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 $7.55, dividend yield is 6.6%)
Required cash flow for dividend: 137 mil or 34 mil per quarter
Venture gain a lot from exchange differences. I will say they barely scraped by their cash flow to pay for this full year dividend. Annualized dividend is around 112 mil.
Elec & Eltek
EBITDA was down 8% which is large but still ok. Net Profit was down 28%! That is massive. It looks like the China circuit board demand remains weak.
Basic earnings per share is USD$ 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.
- 42 Years of Europe Small Cap Value Premium over MSCI Europe. - March 29, 2023
- 98 Years of US Small Cap Value Premium Over S&P 500 - March 28, 2023
- The Story of My Dad’s Caregiver Mar Re (and a little about Active Global Caregivers) - March 26, 2023