An analysis of a public company listed on ASX

In this assignment, you are required to conduct research and analysis of a public company
listed on ASX. Your research will focus on the dividend payout policy. You will also study the
franking credit system in Australia, which helps you understand the dividend tax payments
when you become a shareholder in the future.
You can find in the appendix a list of companies on the ASX that pay regular dividends.
Choose one company from the list and present an analysis report to address the following.
Task 1: Company background (10 marks)
Provide an introduction of the company you choose, such as its main business, corporate
structure, industry, market share and/or business strategies. The description should be your
own writing, not copied directly from the company’s website or financial reports. You
should also comment on the source of revenue/income and major risks faced by the
company. Lastly include a brief analysis of the company’s historical share price.
Task 2: Dividend yield and payout policies (25 marks)
Conduct a detailed analysis of the dividends in the past five years, from 1 July 2015 to 30
June 2020:
• Calculate the annual dividend yields and dividend payout ratios of the firm in the last
five years (financial year from 1 July 2015 to 30 June 2020).
• Explain how the ratios are calculated.
Determine whether there has been a major change in the company’s dividend policy in the
last five years, and discuss the possible reasons why there is/isn’t a major change. In
particular, under the current pandemic, most companies’ financial performance was worse
than expected. Comment specifically on how the most recent dividend payment was
affected, with reference to your analysis result. Is the influence likely to be long-term or
short-term? What do you think would happen to the future dividends and payout policies?