asx investment talks

SPEAKER: Matthew Olsen, van Eyk Research

LOCATION: Sydney

DATE: August 2013

ASX INVESTMENT TALKS

It’s not just about yield

DISCLAIMER: The views, opinions or recommendations of the presenters are solely their own and

do not in any way reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691

and its related bodies corporate (“ASX”). Information and material presented at the seminar is for

educational purposes only and does not constitute financial product advice. Investors should obtain

independent advice from an Australian financial services licensee before making investment

decisions. No responsibility is accepted by ASX for any loss or damage arising in any way (including

due to negligence) from anyone acting or refraining from acting as a result of this information or

material.

© Copyright 2013 ASX Operations Pty Limited ABN 42 004 523 782. All rights reserved 2013.

Disclaimer

This presentation is given by representatives of van Eyk Research Pty Ltd ABN 99

010 664 632, corporate authorised representative of van Eyk Financial Group Pty

Ltd ABN 28 149 679 078, AFSL 402146 (authorised representative number

408625) to wholesale clients only (within the meaning of section 761G of the

Corporations Act 2001 (Cth)). By attending this presentation you are representing

that you are a wholesale client.

This presentation has been prepared without taking account of any individual’s

objectives, financial situation or needs. Before making or recommending any

investment decisions, the relevant product disclosure statement should be read

and advice ought to be obtained from an appropriate financial adviser.

2

“It’s not just about yield” Equity Income Investing – Basic Concepts

Matthew Olsen

Deputy Chief Investment Officer – van Eyk

http://vaneyk.com.au

Dividends

Franking Credits

Retained Earnings

Valuation Discount

4

The Key Sources of Equity Income

What are the drivers for different dividend policies?

5

Growth versus income policies for companies

6

Companies changing their dividend policy over time

7

Dividends

Franking Credits

Retained Earnings

Valuation Discount

8

The Key Sources of Equity Income

FCF = Net Operating Cash Flow minus Maintenance Capex

FCF / NPAT

FCF / Dividends

9

Free Cash Flow (FCF)

Companies explaining their dividend policy

10

Franking credit changes

11

Matthew Olsen

Deputy Chief Investment Officer – van Eyk

http://vaneyk.com.au

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