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Dividend Portfolio: Bendigo and Adelaide Bank Ltd (ASX: BEN)


Published 16-APR-2015 00:00 A.M.


1 minute read

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Overview: Bendigo and Adelaide Bank Ltd (ASX:BEN) is an Australian publicly listed company offering a broad range of banking and other financial services. Under the Bendigo and Adelaide bank umbrella, the business operates under four distinct brands and offers retail and wholesale banking, wealth management services, business, and commercial lending, payments services, foreign exchange, and superannuation. The company has assets under management of more than $52bn.


Catalysts: Bendigo and Adelaide Bank Ltd announced solid half-year results for FY15 with NPAT of $227.9m up 25.8% on the previous corresponding period (PCP). Total lending rose 7.5% during the half with business lending rising 19.7%. BEN pays an attractive dividend with full-year distribution yielding 4.8% at the current price. BEN has increased NPAT by 90% since FY12 and is on track to achieve another year of double-digit growth. The stock travels in a moderate long-term uptrend and the $12.50-$12.60ish level is the lower end of its trading range.

Hurdles: The company operates in a competitive sector that is historically being dominated by the big four banks. Weak economic conditions may further weigh on the market sentiment which could slow both retail and business lending. FY15 half-year results showed an increase in cost margins.

Investment View: Bendigo and Adelaide Bank Ltd offer profitable exposure to the financial services industry. We are attracted to BEN’s fully franked dividend and earnings growth trajectory. Subdued economic conditions could weigh on its earnings, however, BEN remains an attractive income opportunity that is currently trading at the lower end of its trading range.


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

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The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

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