SG Special Dividend potential

SG Special Dividend potential: Following M1’s special dividend, Deutche reckons the following stocks could have special dividend potential too. SATS – Significant potential to accelerate returns. Has strong dividend track record, with avg 70% ord payout over last 6 years, and 3 special dividends in the last 3 years. With $ 268m net cash and management targets 30% net debt/equity; assuming no further M&A implies up to 13cents/share shareholder payout per year over next 5 years. Deutsche thinks there is significant potential for SATS to accelerate shareholder returns. SIA – Healthy balance sheet and has capability to pay out special dividend, but Deutsche reckons unlikely given cautious business outlook CityDev – Special dividend is unsurprising given 50th anniversary, following 8¢/share special dividend in 1H. However, even with a special dividend, the overall dividend yield may not be enough to excite investors. Assuming a repeat of 1H dividends, this would imply a FY13 yield of 1.7%. OUE – Deutsche thinks a dividend is likely following spinoff of OUE Bayfront and listing of OUE CT. Recall following the listing of OUE Hospitality REIT, the company paid a special dividend of 20cents/share and a further 1:6 dividend in specie of OUEHT.