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.
Lets have a look at Telecom New Zealand Ltd [TEL.NZ] this time. I have skipped to the end of the alphabet here because Telecom is in the news and it is bad news, again. When I started this series I was convinced that this company would be one of those that would show better returns than most would think given that its share price is currently around its 1992 IPO level. Lets see.
With NZ$5.95c in net dividends paid (see chart above & 1997, 1999, 2009 TEL Annual Reports ) (the reason why I thought the returns would be better than simply looking at the share price and ironically the reason why the company is struggling and getting so much bad publicity - too much paid in dividends and not enough investment back into the company) and another 33% of that figure gained for those eligible for associated tax credits, makes just over a 450% return (see chart below for share price percentage gain against the average of all NZX indexes) over the 18 year listing which gives an annual net return of around 25 %.
This is approximately 35% better than the return from 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
Sanford Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd
Telecom NZ @ Share Investor
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Download every available TEL Annual Report Free
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c Share Investor 2010
Tuesday, February 23, 2010
Long Term View: Telecom NZ Ltd
Posted by Share Investor at 8:35 AM 0 comments
Labels: Long Term View, Long Term View: Telecom NZ Ltd, telecom
ODT does the Business
Heads up for the Otago Daily Times business section. I have been too lazy in the past to make my way over there, focused instead on NZ Herald Business and Stuff Business pages and Googling.
I have heard that it is a good business read. Guess what, it is.
More stories, better analysis and less uneducated opinion in their business news stories.
With the possible exception of the National Business Review (a mainly subscription offering), the ODT should be the destination for your daily business news fix for New Zealand business news and commentary if you want to keep in front of your competition.
I am making it mine from now on.
Related links
ODT Business
Recent Share Investor Reading
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c Share Investor 2010
Posted by Share Investor at 7:31 AM 0 comments
Labels: Business news, financial media, Otago Daily Times