Sunday, June 27, 2010

Long Term View: Sanford Ltd



In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

Sanford Ltd [SAN.NZ] has been a good investment for those who have been shareholders since its listing in December 1960 and even better for its founder Albert Sanford and his generations of family who established the company in the late 1880s - see 2003 Annual Report for more detail (we will start at an adjusted $NZ1.00 per share from available 1989 data to make our comparison) $2.87c in net dividends (excluding the NZX listed period 1960-1997. No data can be easily found for dividends) and 30% more in tax credits (see chart above) and nine share splits/tax free share issues or share cancellations: 11:10 in 1991, 11:10 in 1992, 11:10 in 1993, 1:10 in 1996, 1:3, 1:4 in 1998, 1:8, 1:9 in 1999 and 24:23 in 1995 gives SAN a slightly more than 895% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) over the nearly 22 year listing of SAN (the period between 1960 and 1989 is excluded because no shareprice or dividend details are available so the return will be higher than stated here for this period), an approximate annual net return just over 40%.

This is approximately a 300% better return when compared to the average of all NZX indexes.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Sanford @ Share Investor

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The Intelligent Investor: The Definitive Book on Value Investing. A                 Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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