We hold PDL in our Active Income Portfolio, the combination of PPT’s takeover bid, an attractive valuation, plus an apparent bottoming of outflows maintains means this as our preferred exposure to the space, especially after yesterday’s -11.7% fall – the stock is currently estimated to yield over 8% over the coming 12-months and we think the share price, one way or another, will be higher over the coming year.
NB: This morning’s full-year result looks inline with expectations, the 2H dividend of 3.5c will come as a surprise given consensus of 22c for the half however, the dividend was coming off the cash component of the PPT bid, so net net neutral, and we suspect if the bid does not progress, a special dividend will be declared soon after.
- We like PDL around $4.50, the risk/reward and yield combination paints a compelling tale.
MM is long and bullish PDL
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