Wesfarmers (WES.ASX) reported NPAT of $2.25b and announced a final dividend of $0.95. Coles delivered total sales growth of 3.5%, whilst Bunnings was again the standout with 10%+ in underlying growth year on year.
FY17 forecast dividends of $2.10, places the stock on a forward yield of 5%.
We own WES in the model from lower price levels and we’ve sold covered calls into December to enhance the return.
Author: Leon Hinde
Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.
PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:
· Deposit Products
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks