FSF - Fonterra Shareholders Fund

[Tim nice but dim]

Share price today hits $8.50 an ALL TIME HIGH.     

who would have guessed this happens so quickly after the capital return, not me!

[Tim nice but dim]

An interesting article posted yesterday, worthy of comment

https://www.farmersweekly.co.nz/markets/dairy-markets/fonterra-results-give-analysts-confidence-in-farmer-returns/

In particular .......

"Craigs Investment Partners forecasts Fonterra's annual revenue to remain steady at around $25bn, while the net profit from continuing operations falls back to $1.25bn in each of the three forthcoming financial years.

That would generate dividends in a 60c-62c range, compared with the 73c paid out on FY26."

1) Dividend from continuing operations last year was 57c not 73c. You can't include the Mainliand special dividend & compare apples with bannanas.

2) If the Craig's dividend prediction is correct (60 -62c) this would equate to a rise in dividends between 5.3 to 8.8%. In my book an outstanding result that I would be more than happy with.

3) If the dividend goes up then how can EPS not also go up?

4) The article is all over the place fleshing out various conflicting broker & expert predictions & not drawing a final conclusion as to single the meaning of the result. I suggest as usual you DYOR.

[seaweed]

An interesting article posted yesterday, worthy of comment

https://www.farmersweekly.co.nz/markets/dairy-markets/fonterra-results-give-analysts-confidence-in-farmer-returns/

In particular .......

"Craigs Investment Partners forecasts Fonterra's annual revenue to remain steady at around $25bn, while the net profit from continuing operations falls back to $1.25bn in each of the three forthcoming financial years.

That would generate dividends in a 60c-62c range, compared with the 73c paid out on FY26."

1) Dividend from continuing operations last year was 57c not 73c. You can't include the Mainliand special dividend & compare apples with bannanas.

2) If the Craig's dividend prediction is correct (60 -62c) this would equate to a rise in dividends between 5.3 to 8.8%. In my book an outstanding result that I would be more than happy with.

3) If the dividend goes up then how can EPS not also go up?

4) The article is all over the place fleshing out various conflicting broker & expert predictions & not drawing a final conclusion as to single the meaning of the result. I suggest as usual you DYOR.

 

Yes you are right. The normal div payout was as you say 57c and not including the Mainland payout which was $2+16c. Maybe they want the sp to go down so they can accumulate more