2 Dec 2014

Hellaby to raise dividend payouts

7:04 am on 2 December 2014

Hellaby Holdings has raised the amount of earnings it intends to pay out in dividends because it believes the share market is under-valuing its shares.

The investment company plans to pay out about 75 percent of net profit in dividends, up from about 50 percent.

However, the company has also suspended its dividend reinvestment plan under which up to almost 50 percent of dividends have previously been invested in new shares.

Managing director John Williamson said the company's share price had been flat for two years, despite Hellaby delivering a 44 percent increase in underlying profit in the year ended June.

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