Premium restructure pays off
After a major off-market buyback during the global financial crisis, Premium Investors has proved its returns are back on track by providing investors with a final dividend of 3.5 cents fully franked.
Chairman Tom Collins (pictured) said providing a strong dividend stream over the past year had been particularly gratifying given the buyback in 2009, which resulted in a 60 per cent reduction in the size of the company.
“During the past two years your board has focused on restructuring the portfolio to a smaller, cost-efficient structure and enhancing the investment process to provide superior benefits to its shareholders,” Collins said in a statement to investors.
Premium Investors is currently trading at around 76 cents compared to its net tangible asset value of 91.6 cents as at 30 June.
Collins said the present unique structure of the company’s investments should assist the maintenance of a sound stream of fully franked dividends in coming years, provided no major deterioration of domestic or global financial markets is experienced.
The dividend record date is 12 August 2011, with a payment date of 9 September 2011.
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