Aristocrat Leisure posted strong FY 2016 results with top-line net profits surging more than 67% to $398 million compared to a year ago. This result was well in front of the consensus forecast of $376 million and reflects strong growth in both the US and Australian markets.
However, as impressive as the headline numbers for the 2015 to 2016 time frame appear, some of the internal figures suggest the growth in share the price may not repeat in 2017. With dividend growth expected to increase from 20.5 cents per share in 2016, to 24.6 cents per share in 2017, the total dividend yield is expected at 1.7%.
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With EBIT expected to rise from $605 million to $674 million, this small increase in expected dividends is making Aristocrat look expensive at current levels.
