“While the special dividend was anticipated, the quantum came as a positive surprise,” says Chee Zheng Feng of DBS Group Research, who describes this amount as “mind blowing”, and has in his July 24 note upgraded his target price to US$4.30 from US$3.60 to take into account also a higher valuation premium.
Analysts have been flagging that DFI Retail Group will pay a special dividend from proceeds of a series of recent divestments. When the Hong Kong-based company announced this payout together with its 1HFY2025 earnings on July 22, the quantum came as a pleasant surprise.
Besides an interim dividend of 3.5 US cents per share, DFI plans to pay a special dividend of 44.3 US cents, implying a yield of more than 15% based on the July 22 closing price of US$3.16 ($4.03).
