Rio Tinto posted a solid result for 1H17.
RIO is quoted Ex-Dividend this morning at AUD$1.3772, payable on the 21st of September 2017.
As expected, RIO opened lower today, although strong future capital returns via increased dividends will provide added buying support.
Diversified financials – Wealth management firm IOOF Holdings Limited (IFL.ASX) yesterday released its profit results for the six-months ending June 30, 2017.
Underlying NPAT was reported at $90m, which is up 15% on the same time last year and full year FY17 profit at $169m.
IOOF declared a final dividend of 27c per share, fully franked, bringing the Full year dividend to 53c and placing the stock on a 5% yield.
A surge of net inflows from it’s expanding FUM business and strategic cost control are likely to help underpin 10%+ EPS growth into FY18, with forward revenue increasing from $566m to $590m, EBIT increasing from $240m to $270m and DPS to increase to 0.56 per share.
Our Algo Engine last signalled a BUY at just over $8 on 15/03/2017.
Following yesterday’s result, IOOF posted a new 52-week high of $10.86 on expanded volume.
IFL is now trading at 18x underlying EPS, we view this is full value and we feel the stock is likely to begin a new consolidate range.
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