Soup Restaurant: Special dividend declared.

When Dian Xiao Er became independent of Soup Restaurant last year, the expectation was that Soup Restaurant's earnings would be hit badly. If we look at the year 2011, 42% of Soup Restaurant's profit was contributed by Dian Xiao Er.

In 2012, although profit from continuing operations, net of tax, jumped 126.9% year on year, removing the contribution by Dian Xiao Er reveals a more modest increase of 59%. Even so, we should take note that the performance of Soup Restaurant was boosted by a one time gain from the divestment of Dian Xiao Er to the tune of $3.4m.

If we examine my initial motivation to invest in Soup Restaurant last year, a big part of it was because I thought the probability of a special dividend being declared was quite good. Of course, since I like Soup Restaurant's food and would patronise their restaurants monthly, there is the benefit of getting a discount as a shareholder during my visits too.

Well, the special dividend did not happen then as the management decided to plough the money back into the business. However, since then, I have received dividends twice and this would be my third round of dividends.

Total declared this round:
Interim dividend: 0.35c
Special dividend: 0.8c
Final dividend: 0.35c

As some would say "third time lucky" and a special dividend has been included this time round. A total dividend payout of 1.5c translates into a dividend yield of 10.95% based on the high of 13.7c per share touched this morning. Without the special dividend, dividend yield would be a less exciting 5.1% but still not too shabby.

See financial statement: here.

Related posts:
1. Soup Restaurant: Special dividend?
2. Soup Restaurant's S-card.