This will only be a short post as I have been sick lately, hopefully I can kick this sickness and get back to proper health and top quality posts! 😉
I bought 497 shares of Vita Group. While the share price of this has been smashed lately by rumours of Telstra (Australia’s largest telco) taking back some of it’s stores, I still believe it is a quality stock at this price. Typically, Vita has traded a lot higher but a few bad rumours have been flying around which has sunken the share price. I’ll take a gamble on them because the management are solid, have been increasing the dividend since 2012 and at the current share price produces a fully franked (tax credits) of slightly over 11%. Now you can’t tell me that people wont jump all over this (2017 is lower as only one dividend has been paid so far).
VTG Dividends per year – marketindex.com.au
Vita have also been increasing all their important stats, Revenue is up, underlying EBITDA is up and more importantly the dividend was increased. Lets hope they can maintain such a dividend.
Vita Group LTD – 1H FY17 Results Presentation
I believe that the share price has already taken into the account that some of the stores have been taken back, but here is why I jumped on board! The agreement between Vita and Telstra doesn’t expire till 2020. I have 2 and a half years to decide what my next move with these are… possibly a free hold position if the share price increases, that way I get some shares and get my money back.
I hope the share price can start to make a reverse trend and start heading upwards and then produce some nice dividends also. It is a risk, but well worth the shot.
You can take a look at my PORTFOLIO HERE.