12/19/11: Two for Dividend Growth

By David Dittman • December 19, 2011

If “dividend growth” is the phrase of the month, M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF) would have to be in the argument for top of the class, with impressive one-year (60 percent), three-year (47.36 percent) and five-year (43.93 percent) growth rates.

After a decade of rapid organic and acquisition-led growth on the operations side, M2 remains well-positioned to boost cash flow and investor payouts.

Now paying AUD0.16 per share, M2 Telecommunications Group is a buy under USD3 and new addition to the Australian Edge Portfolio Conservative Holdings.

M2 and fellow Portfolio addition Mineral Resources Ltd (ASX: MIN, OTC: MALRF) would make a fine valedictorian/salutatorian of class ranked on dividend growth, as its rates (one-year 110 percent, three-year 29.48 percent, five-year 103.62 percent) are virtually indistinguishable fro the telecom’s.

It now pays AUD0.42 per share per year and is executing on a transformational move that holds significant potential for shareholders.

A new Aggressive Holding, Mineral Resources is a buy under USD12.

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Robert Hein

12/28/11 ‐ 3:44pm ET December 28, 2011 at 3:44pm ET

It is difficult getting used to AUS when I have been with your Canada stocks. Low div. very low voume and low price. That is a difficult change. I have been waiting for good information from this area and am disappointed at what I see. THEIR GOVERNMENT APPEARS WORSE THAN THE CANADIANS.

James Wilday

01/10/12 ‐ 11:54am ET January 10, 2012 at 11:54am ET

I would like the names and contact info on 3 or 4 of brokers
who handle Australian stocks, Thank you

David Dittman

01/12/12 ‐ 8:22pm ET January 12, 2012 at 8:22pm ET

Hi Mr. Wilday,
Our Broker Guide includes the names of several that trade directly on the ASX, for a fee, as well as those that handle US OTC trades for F shares and ADRs denoted by the fifth-letter-Y symbols. US ADRs, such as that of BHP Billiton, are also listed on the NYSE. OTC-listed ADRs, in fact, should be as easy to access as NYSE-listed ADRs. Interactive Brokers is the gold standard. Fidelity’s service is solid and includes direct access to the ASX–again, for a fee. E*Trade is efficient as far as trading on the OTC generally and NYSE-listed ADRs, of course.
Thanks for writing.
Best,
David

Elsa Rickards

03/17/12 ‐ 7:02pm ET March 17, 2012 at 7:02pm ET

I am looking for the Aussie communications company using the new cloud technology.
Thank you.

David Dittman

03/19/12 ‐ 10:06am ET March 19, 2012 at 10:06am ET

Hi Ms. Rickards,

The company you write of is Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY), Australia’s largest telecom, which, like many of its kind around the world, is using hosting services–broadly termed “The Cloud”–to attract and keep customers. “The Cloud” is a service, not a product purchased in a box. But it enables the same types of user activity on the other end. Hosting and providing data management, data storage and computing applications without having to maintain infrastructure is attractive to both consumers and businesses.

The cool thing about Telstra is that it has the biggest and best network, with the greatest capability to reinvest. This latter will only be augmented with the AUD11 billion it’s receiving from the National Broadband Network (NBN) to give up its fixed-line monopoly in the country. The only problem right now with Telstra is price; it’s trading above our buy-under target but has retreated toward us a bit of late as euphoria about the AUD11 billion has given way to reality–that it’s not getting one of those huge, lottery-sized checks but a cash stream that’ll make up for its lost monopoly advantage.

Thanks for reading, and thanks for writing.

Best regards,

David

lois

04/14/12 ‐ 10:22am ET April 14, 2012 at 10:22am ET

Would you reply to Mr. Hein’s comments….AUS seems to have a “socialistic” bent; and their increased tax levy on the miners is very disappointing. Thank you.

L.F.

David Dittman

04/16/12 ‐ 3:00pm ET April 16, 2012 at 3:00pm ET

Hi Lois,

Yes, the mining tax is disappointing. It was negotiated by the current government and major miners such as BHP Billiton and Rio Tinto.

The Minerals Resource Rent Tax will also fund a reduction in Australia’s overall corporate tax rate, at a time when exporters are struggling with an historically strong Australia dollar; this is sound policy. No, Australia is not “socialistic,” whatever is meant by that term. Australia ranks #64 in terms of government spending as a percentage of GDP, lower than Canada, for example, and Germany, in the world. The Heritage Foundation–not exactly a left-wing bastion–ranks Australia #3–behind only Hong Kong and Singapore–in its Economic Freedom Index.

Thanks for reading, and thanks for your question.

Best regards,

David

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