The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) result is due to be released today. In this article I’m going to share some of the things I’m looking for.
As a reminder, WHSP is an old and diversified investment house that I’m a shareholder in and have been positive about for a while.
What I’m looking for in the WHSP result
Dividend growth
One of the main reasons why I like WHSP so much is the fact that it’s a very long-term focused and defensive business. It has managed to outperform the ASX over the long term.
But it offers more than just capital growth. It’s a great dividend stock in my opinion, WHSP’s board has increased its dividend every year since 2000. That’s a very strong record in my opinion – the best on the ASX – and it’s fair to say I’m expecting more dividend growth in today’s result.
I’m not expecting growth of more than 1 cent per share, but an increase is an increase in this COVID-19 world, it’s particularly good for a non-tech or non-e-commerce share.
Investment intentions
WHSP has a few large investments like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).
However, it’s the new investments that show the management’s latest thinking about opportunities and the direction that it wants the business to go.
WHSP has been looking at beaten up opportunities in recent times like Regis Healthcare Ltd (ASX: REG) and Retail Food Group Limited (ASX: RFG). I’m interested to see if it’s still looking at beaten-up listed ideas like that, new industries or whether it’s focused on expanding its existing private businesses.
Thoughts on New Hope Corporation Limited (ASX: NHC)
New Hope is one of the largest coal miners on the ASX and it continues to go through volatile times. New Hope’s FY21 half-year result, which was reported this week, showed a mixture of numbers.
Its net profit after tax before non-regular items fell 99% to $0.8 million and the statutory profit plunged 179% to a loss of $55.4 million. Total tonnes sold fell 23% to 4.9 million tonnes and the realised sales price declined 19% to $78.8 per tonne. But coal prices are going up, particularly after the recent bad weather in NSW.
It wasn’t too long ago that WHSP decided to reduce its holding of New Hope, so I wonder if there will be any different comments about New Hope’s future or the WHSP holding of the coal company.
Look out for the Rask Media write up
You’ll be able to find my write up on WHSP and my thoughts later this morning after it has released its result.
Before you consider WHSP, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.
