STADIO - a dividend stock?

Good Morning Voornaam,

Get out those earphones - there are great learning opportunities available to you with these podcasts:

I hope that one (or more) of those caught your eye to keep you busy at work today. In the meantime, let's move on to Ghost Bites, covering the latest JSE news on a day that was extremely painful for equity investors thanks to a risk-off mood in the wake of Credit Suisse worries.

STADIO is Italian for stadium, though it could also mean dividends

STADIO is a growth stock, right? Well, not many growth stocks have a dividend payout ratio of roughly 45%. In its latest results, STADIO reminded us that the second semester has historically been a period of slower growth than the first semester, so the panic after the financial update leading into these results was probably overdone.

The management team is clearly happy with the balance sheet, with the dividend per share up by 89% despite HEPS only increasing by 18%. "Only" is of course a relative term, here. As a Transaction Capital shareholder, +18% feels very far away right now. Heck, even -18% would be nice.

In addition to more details on STADIO, this morning's Ghost Bites includes a few property counters (Accelerate, Fairvest and Growthpoint), some mining houses (MC Mining, Merafe and Orion) and a couple of investment holding companies (Grand Parade and EPE Capital Partners). Read it here>>>

What was that about Swiss banks?

Famous for banks, chocolates and watches, one of those three use cases for Switzerland is under pressure. Credit Suisse has made sev eral horrible decisions and those chickens (or Lindt bunnies) are coming home to roost. Investors needed a sugar boost yesterday, as all major equity indices were down. The only place to hide was gold, which for once actually behaved like a safe haven.

TreasuryONE highlights the rollercoaster ride in US treasury yields, as well as a 4% dip in Brent Crude. The rand did better than many other currencies, testing the R18.40 level.

In the US, the data is pointing to a downward trend in inflation. PPI and Retail Sales missed their marks, which suggests that the FOMC may focus on market stability at the next meeting and pause rate hikes.

For those who missed yesterday's webinar on TreasuryONE's cash flow forecasting and management solution, watch it here>>>

Good luck out there today!

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