FSF - Fonterra Shareholders Fund

[Tim nice but dim]

SP down to $8.05 since going ex-dividend. With the $2 return still to come (ex around 9/4) that may represent a buying opportunity depending on how one sees things playing out after the divestment?

Im so happy after getting my last dividend prediction so VERY WRONG.

So what does this mean for future buying opportunities?

The dividend policy states "An interim dividend will not be more than 50% of the forecast total dividend and no more than net earnings at half-year."

So full year div will be at least 48 cents or an EPS of 60 cents minimum. With recent firming of WMPP price we should expect EPS of 65 cents per share or, top of the prediction at last years final result.

Nobody can predict what the share price will be after the capital return but an odds on bet will be a reduction in share price by $2.00.

How long will this take to recover?

Based on div 48 cents/share price $6.00 is a tax paid yield of 8.0% should see buyers lining up & a slow recovery. Best to have your 2 bucks in the bank IMHO.

[Left Field]

$2.00 per share capital return dates announced....

https://www.nzx.com/announcements/470236

https://api.nzx.com/public/announcement/470236/attachment/465734/470236-465734.pdf

Trading halt will apply from market open on 8 April 2026 through until the close of trading on 10 April 2026. This is to ensure all trades have settled before the record date and to allow time to update Fonterra's share register.

Record date for being eligible for the capital return is 5.00pm on 9 April 2026 and the payment date is 14 April 2026.

[HAWKDOG]

Fonterra and Greenpeace settle over labeling - and the use of imported palm kernal feed.

https://www.fonterra.com/nz/en/our-stories/media/a-statement-from-fonterra.html

https://www.greenpeace.org/aotearoa/story/the-supermarket-trip-that-led-to-fonterra-admitting-its-100-new-zealand-grass-fed-claim-is-misleading-and-deceptive/

[Left Field]

Payday tomorrow - Tuesday.

A billion dollar boost for the NZ economy (and a nice boost for my bank account.)

Yippee.

[Tim nice but dim]

Very early in the days trading but looks like the hit was about $2.00 per share, interesting where it ends the day.

[seaweed]

Hey Basil look at FSF. NTA is $8.19c, with 42.97 YLD. Is that tempting or not LOL.

[seaweed]

Hey Basil look at FSF. NTA is $8.19c, with 42.97 YLD. Is that tempting or not LOL.

It is probably closer to 9.2% YLD at $6.40c. Correct me if I am wrong.

[Left Field]

New appointment pleases me..... promotion from within.

https://www.nzx.com/announcements/470761

Fonterra names Richard Allen as new CEO
 
 Fonterra Co-operative Group Ltd has today announced the appointment of Richard Allen as its next Chief Executive Officer, succeeding Miles Hurrell.
 
 Chair Peter McBride says Richard is an exceptional leader who will bring to the CEO role a strong connection with farmer shareholders and customers and a deep knowledge of Fonterra's global operations and markets.
 
 "The Board is really pleased to announce Richard as Fonterra's next CEO, who will lead the Co-op into the next phase of its strategic implementation.
 
 "Richard is passionate about our Co-operative," says Mr McBride. "His most recent role is President Global Ingredients, responsible for Fonterra's Ingredients sales, optimisation, risk management, trading and global manufacturing.
 
 "He joined Fonterra as a graduate in 2008 and since then his career has spanned our global supply chain. He led our farmer facing business Farm Source for five years, has worked in China as Vice President of our Foodservice business, was the founding CEO of MyMilk, and more recently served as President Atlantic based in Chicago, responsible for relationships with a number of our global key accounts," says Mr McBride.

[LoungeLizard]

Down $2 per unit as expected. All going to plan (Fontera are targeting earnings to return to FY25 levels by FY28) then we should see that go up over time. And in the meantime, the expected yield on the current price is excellent. A long term hold for me.

[seaweed]

Down $2 per unit as expected. All going to plan (Fontera are targeting earnings to return to FY25 levels by FY28) then we should see that go up over time. And in the meantime, the expected yield on the current price is excellent. A long term hold for me.

Am looking forward to big payout tomorrow. $3.2b floating around looking for a home. Maybe some might feed back into FSF and other companies. From memory Fonterra is holding back $1b for future investment.  FCG shares have gone the other way today up 25c.

[LoungeLizard]

Am looking forward to big payout tomorrow. $3.2b floating around looking for a home. Maybe some might feed back into FSF and other companies. From memory Fonterra is holding back $1b for future investment.  FCG shares have gone the other way today up 25c.

Yes, $3.2b might give the NZ economy a bit of a sugar-hit for Luxon and co to take the credit for.
I would imagine some (including me) might be thinking of putting some of their payout back into FSF shares, which might give the SP a bit of a lift as well. 

[LoungeLizard]

Capital return has already hit the bank account. 40c dividend still to come. Happy days!

[seaweed]

Capital return has already hit the bank account. 40c dividend still to come. Happy days!

YEP. Good stuff, no tax taken out. And yes another 40c to come  

[alkebab]

https://www.nzx.com/instruments/FSF
Gross div yield showing 44%..........um, ok, lol.

Got both in my bank account now

[Left Field]

Capital return has already hit the bank account. 40c dividend still to come. Happy days!

Well done holders!

I'm very happy I switched my free holding of ATM shares to FSF over 12 months ago,  (especially considering ATM's recent downgrade.)

 FSF now a conservative 5% of my portfolio with my average holding SP well below today's SP and prospects of above average dividend returns in the future. I'm looking to add more FSF in the months ahead and will possibly double my holding to around 10% of my portfolio.

Keeping my NZX portfolio  conservative in these difficult Trump times is working well.

ps encouraging to see FSF SP rising today on the back of FSF payout receipts.

pps. encouraged by today's SP support I've already increased my holding by 33%.