A2M +13.31%: Impressed the market today with a slight change in their strategy, announcing a maiden dividend at their AGM. The company announced its expecting mid-high single digit revenue growth in the full year.
- A2 Milk is targeting a payout ratio of 60-80% of NPAT and expects to pay its first dividend in February 2026.
The pivot to paying out dividends as opposed to reinvesting for growth is a significant change in direction and might attract a cohort of investors seeking yield, provided the business can sustainably grow its earnings. We still like the business as it stands to benefit from the China stimulus in the short-medium term.
MM is cautiously bullish A2M
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