Is SSM the great dividend stock it would appear?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 06/05/2022

Is SSM the great dividend stock it would appear?

Hi James, Just a follow up to previous advice on SSM …if indeed they will be paying dividends starting Aug at 5c , and two of these per year this would seem to be an excellent value/ income stock at the current price …or am I missing something here ? Many Thanks Don

Answer

Hi Don,

From a dividend perspective SSM does look good but the stock has fallen from $3 to under $1 over the last few years which add an obvious risk around the stock. At MM we believe the company will now start paying 2 dividends per year at around 4-5c each and the recent improvement in the stock suggests others agree with us, its definitely an interesting aggressive yield play under $1.

chart

Service Stream (SSM)

LAST UPDATED 06/05/2022 11:55

Latest Reports

Afternoon report 24/04/2024

The Match Out: CPI dents equity rally ahead of ANZAC Day

Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.

Morning report 24/04/2024

Portfolio Positioning: Bonds fell, dragging stocks along for the ride, both are now basing in our opinion

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.