Vehicle tracking and fleet management specialist Cartrack is mulling a more conservative dividend policy. Will this stall sentiment? The market looks a little pensive at this delicate juncture, with indications that the targeted dividend cover of between 1.25 and 1.55 times headline earnings could be revised to provide for cover of between 1.25 and 2.5 times headline earnings. The pegged interim payout of 20c/share was covered 1.9 times by headline earnings of 38c/share, and indications are that the final dividend cover for the 2017 financial year will range between 1.75 and 2.5 times headline earnings. Investors will probably debate the dividend decision at length. Seen against the rapid downturn in Cartrack’s African businesses, the conservative dividend policy signals some bumpy miles ahead. There is also the recent foray into the US, which will take some time to reach break-even at cash flow level. The US venture only starts selling this month and the first meaningful revenues w...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.