On January 15th, we published “Dividends: Sweden’s finest“, your guide to build a long-term dividend machines with interesting Swedish stocks. The response has been overwhelming and we thank you for that.
The recent turbulence in the stock market has made our report even more relevant as investors have dumped shares in a general “risk-off” approach. Those companies that have already reported their full-year numbers have, on the contrary, mainly delivered decent results and in many cases increased their dividend payments. The result of this is even more attractive dividend yields compared with the beginning of the year.
On of the company’s that is included in our dividend portfolio and that has reported a strong set of full-year numbers is Unlimited Travel Group (UTG). The timing could not have been worse, however, as the company published its report on Monday morning (February 8th) and we all know what has happened with global stock markets since then. UTG’s stock did actually go up despite the general market sell-off but by no means by as much as the report would have justified. Most importantly for us, UTG’s Board proposed a dividend of SEK 3, up from SEK 1,70 last year. The proposed SEK 3 dividend consists of an ordinary dividend of SEK 2 and an extra-ordinary dividend of SEK 1, due to the strong financial position of the company.
UTG’s CEO Richard Durlow comments in the report: “Bookings have continued to strengthen during Q4. As of December 31st, the value of trips booked for 2016 amounted to SEK 193m, compared to SEK 140 at the same time last year. EBITA increased during the last quarter of 2015, despite a negative contribution from our new operations amounting to SEK 1,7m. The initiatives that have conducted during 2014 and 2015 have contributed to a strong starting point and positive momentum going into 2016“.
At a current share price of SEK 25, UTG has a dividend yield of 12%. For those of you who haven’t read our dividend report yet, you can find it here!