Small cap stocks can be cash cows. Here are eight foodie stocks that pay dividends
Food & Agriculture
Food & Agriculture
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But it’s not all about growth potential — even in the small cap sector.
There are small cap stocks in the food, beverage and farming arena that are paying out a dividend most (if not all) years.
Stockhead’s resident data guru Nicholas Sundich tracked down eight small cap food stocks that are sharing rewards with shareholders.
>> Scroll down for a table of ASX foodies paying dividends
Here they are:
Select Harvests (ASX:SHV)
Market cap: $513m
Share price (Sept 10): $5.30
Select is in the almond business, and also imports other nuts to sell into supermarkets.
California produces 80 per cent of the world’s almonds but since it’s been in drought for years Australia is considered the next best place to grow them.
The company’s full year net profit surged 120 per cent to $20.4 million so this year they decided to share the wealth with a 7c dividend.
“The growth in profitability was driven by an improved performance from the almond division,” said managing director Paul Thompson.
Unfortunately you had to be a shareholder by yesterday in order to grab that one.
Australian Vintage (ASX:AVG)
Market cap: $160m
Share price (Sept 10): 58.5c
The Aussie vintner is led by Neil McGuigan of the eponymous wine family — you may have seen their billboards: “Next time bring a McGuigan”.
The wine business was good in fiscal 2018: they paid out 1.5c this year as opposed to 1c last year.
Mr McGuigan said they crushed less of their own grapes last year and more of other people’s.
Sales of the house brands McGuigan, Tempus Two and Nepenthe were up 20 per cent as they try to muscle in on the market for less discerning British drinkers in the UK.
You can still jump on this dividend: you need to own shares by October 19 to receive the dividend in November.
Tegel Group (ASX:TGH)
Market cap: $368m
Share price (Sept 10): $1.05
The kiwi chicken farmer paid a total dividend of 7.55c in 2018.
But not only did you have to own by June 29 to get it, but there’s little chance of Tegel ever paying a dividend again.
Philippines chicken behemoth Bounty Fresh got to just over 96 per cent acceptances for its $1.23 a share takeover offer at the end of August.
FFI Holdings (ASX:FFI)
Market cap: $43m
Share price (Sept 10): $4
Who knew cake decorating and icing could make it as a listed venture?
The miniature company paid out a whopping 20c fully franked dividend this year, and the cut off date for buying shares in order to reap the payout is September 18.
Good luck getting your hands on any of the stock though. They only have 11 million shares on issue.
FFI made $2.3 million in profit in fiscal 2018 and said a “significant improvement” in profitability acme from the chocolate and cake decorating divisions.
Capilano Honey (ASX:CZZ)
Market cap: $199m
Share price (Sept 10): $21.71
Capilano was another high-paying stock, handing out a total of 42c for every share in fiscal 2018.
We say ‘was’ because they’ve been taken out by a group of China-focused investors who want to sell certified real honey into the Asian region.
Capilano came under fire last week when a media sting found that some of their imported honey was not, in fact, honey. It was a detail which didn’t appear to surprise a number of hard-bitten and jaded investors in the online stock gossip forums.
Ridley Corp (ASX:RIC)
Market cap: $432m
Share price (Sept 10): $1.41
Chicken musher Ridley paid out a total of 2.75c in 2018 with a record date — the day you’ve got to own shares by to get paid — of October 26.
That was despite the fact that profits slumped 30 per cent after Ridley ran out of chickens to mush up earlier this year.
NZ King Salmon (ASX:NZK)
Market cap: $332m
Share price (Sept 10): $2.29
You’ve don’t have to be happy with New Zealand dollars if you want a dividend from NZ King Salmon as they do pay “an Australian equivalent”.
But if you don’t want to be whacked with exchange rate fees, you could just spend the NZ3.5c (A3.2c) checking out their changing South Island operations.
Chief Grant Rosewarne says they’re kicking climate change plans into high gear after getting a fright over summer when strangely warm waters killed off stock.
The record date is September 12.
Huon Aquaculture (ASX:HUO)
Market cap: $404m
Share price (Sept 10): $4.53
Salmon farmer Huon pays a final 2.5c franked dividend (5c before tax) and the record date is September 14.
That was based on a record full year profit of $35.4 million.
That was in spite of facing a similar problem as NZ King Salmon: high sea temperatures which caused “rapid onset of amoebic gill disease”.
|Code||Company Name||Net yield||1 year growth|
|TGH||TEGEL GROUP HOLDINGS||9.31%||6.70%|
|NZK||NEW ZEALAND KING SALMON INVESTMENTS||1.73%||1.73%|
|HUO||HUON AQUACULTURE GROUP||2.67%||2.20%|