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  

[Left Field]

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.

FSF back on trend after the $2.00 special dividend payout slump.

Aquiring FSF with an av hold SP below $5.00 provided a safety margin  that makes future dividend potential even more attractive. A nice hold in a long term well balanced portfolio.

[LoungeLizard]

FSF back on trend after the $2.00 special dividend payout slump.

Aquiring FSF with an av hold SP below $5.00 provided a safety margin  that makes future dividend potential even more attractive. A nice hold in a long term well balanced portfolio.

Agreed. Diversity is rule number one of Investment 101. Picking winners works fine until it doesn't. That said, it's good to have a few "fun" stocks. PEB is likely to provide my best return this year - go figure!

[Left Field]

Crikey, nice action on close yesterday.....SP up to ATH of $9.20 plus a $0.30 divvy arrived in the bank.

[Left Field]

Agreed. Diversity is rule number one of Investment 101. Picking winners works fine until it doesn't. That said, it's good to have a few "fun" stocks. PEB is likely to provide my best return this year - go figure!

lol. I couldn't possibly comment regarding PEB on this thread.... however I suspect some of us  are 'well positioned.'

Back to FSF - On RNZ today the latest Global Diary Price auctions.... overall diary prices up 2.2% with Whole Milk Powder up 4.4%

https://www.globaldairytrade.info/en/product-results

[LoungeLizard]

SP at $9.45. Looks like that $10 prediction will prove right, possibly before xmas at this rate.

[seaweed]

Everyone happy with the 5% sp gain today Give me the thumbs up if you are.

[Left Field]

Everyone happy with the 5% sp gain today Give me the thumbs up if you are.

A good day indeed. My riskiest PEB up 8%. FSF up 5%. FPH and IFT both up around 4%.

I hear FSF earned you a new car.....well done!
( I only managed a second hand RV, but v happy how FSF is progressing.)

[LoungeLizard]

A good day indeed. My riskiest PEB up 8%. FSF up 5%. FPH and IFT both up around 4%.

I hear FSF earned you a new car.....well done!
( I only managed a second hand RV, but v happy how FSF is progressing.)

Funny how we all took the opportunity that the FSF capital return and dividend provided to update our wheels. I traded up the camper van!