Originally Posted by
Beagle
"Oceania Healthcare has established a dividend policy with a targeted pay out ratio of 50% to 60% of annual underlying NPAT". Extract from 2017 annual report.
Might compare the share prices of the listed retirement companies since OCA listed in early May 2017 now.
OCA was $0.79 now $1.09, up 38% plus highest dividend yield of the sector
RYM was $8.48, now $11.23 up 32.4%
SUM was $4.98, now $6.48 up 30.1%
MET was $5.65, now $5.37 down 5%
ARV was $1.29, now $1.33 up 3.1%
Conclusion: Despite the recent SP correction OCA shareholders can take comfort from the fact that theirs's is the best performing company in the sector since it listed by quite a comfortable margin.
Looking forward - We can clearly expect dividends to grow in line with underlying profit growth
RYM is struggling to make its 15% long term underlying profit growth and SUM are struggling to sell their units.
OCA clearly has a business model that involves a much higher level of churn than all other industry players.
I expect the clear advantage OCA has in terms of yield to expand further and I see no reason why OCA won't be the top performing sector participant in terms of capital growth in the years ahead.