The car leasing & salary packaging business traded ex-dividend for 49c yesterday which is equal to 70c grossed for franking. On our entry price of $6.92, this dividend alone equated to a 10% payout. While the stock declined by a slightly greater margin yesterday, the outlook for SIG remains a positive one. Technology can drive scale in this business and this we think is why private equity bid $10.35 a share recently. We held a positive view around capital management, which has now played out via the special dividend however the stock remains inexpensive on 14x with a projected yield ~6% fully franked.
MM remains long & bullish SIQ
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