UTR are only forecasting a final div of 1.25c which is...

UTR are only forecasting a final div of 1.25c which is surprising.

Analysis: The stock is unexciting but is a quiet achiever, growing dividends which will slowly attract investors. Growth has been achieved through acquisition on the one hand, but also through growing demand from advisers for services. With net cash there remains the possibility of further acquisitions, which would be a positive. Driving this will no doubt be 26% stake holder Thorney Investments and 19.9% owner COG Financial Services. We are particularly pleased that the dividends are growing and that the guidance has been slightly improved, even when the company is paying $1.2m for contingent consideration for the FAM acquisition. A factor going forward will be corporations tax, which could flatten out future dividends in the next year or two, however.

UTR Portfolio Risk Rating GROWTH. The value is there, trading on a single-digit PE and a dividend yield of close to 8%, plus franking credits. The problem is that growth is dependent on acquisitions and financial planning is not a sexy business, although the company is doing its best to talk up its technology platform.