- Asset light and scalable business model
- Strong free cash flow underpins forecast 50 per cent pay-out ratio
This asset light and highly cash generative business not only offers investors robust prospects of dividend growth in the years ahead, but strong earnings growth, too.
Earnings per share are forecast to increase by 30 per cent over the next two financial years, driven by growth in the company's market leading vaping business and a fast growing sports nutrition and vitamin operation. The earnings risk looks skewed to the upside, making the current price a decent entry point and one that could potentially deliver 30 per cent shareholder return over the next 12 months as the ratings discount with peers starts to narrow.