Around $4, we think Metcash should attract yield-hungry investors that pocket the dividend from the banks and look for the next ‘pay-day’. While we have covered the investment thesis on MTS a number of times (available on the company page here), the brief version is:
- we think the stock is undervalued for the growth that is coming from their hardware division.
- MTS reports earnings in December and goes ex-dividend just before Christmas with the consensus dividend expectation sitting at 13c fully franked for the half.
- With ANZ, NAB & WBC going ex-dividend in November, we believe MTS is a very logical place for funds to transition towards.
MM is high conviction on MTS
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