Red Star Express has just announced proposed dividends of 35kobo per share payable on the 28th of August 2014 for shareholders who are in its register as at JUly 31st 2014. The market greeted the news positively as the stock opened higher at N5 and closed the week trading Friday 27th June at N5.17. The proposed dividend places the current dividend yield at about 7%.
Considering that most investors will accept a gross dividend yield of 5%, I won’t be surprised if the share price rallies all the way up to about N7. That will be 40% rise from the current price. Not a bad upside right?
Notice: Red Star Express is included in Ugometrics Portfolio and was bought at N4.58