Overview: Village Roadshow Limited is an international entertainment and media company with core businesses in theme parks, cinema exhibitions, film distribution, and film production and music. The Company’s theme parks business includes theme park and water park operations. The Cinema exhibition business includes cinema exhibition operations. The film distribution business includes film, digital versatile disc (DVD), and video distribution operations.
Dividend: VRL is releasing a fully franked interim dividend of $0.15, taking effect on the 26th of June. The dividend paid is above that of previous distributions and is consistent with the growth of VRL as well as outperformance in the share price. Based on the current price, this represents a yield of approximately 2.04%. The dividend is payable after 30 days following the ex-dividend date.
A monthly peer comparison indicates an above-average yield for a stock with such liquidity.
Investment View: Village Roadshow has shown considerable strength in the past 12 months of trade. Given recent consolidation at the bottom of a long-term range ($7 – $7.45), VRL offers an opportunity to participate in a fully franked interim dividend whilst gaining directional exposure at a moderate technical level for the stock.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this report is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
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