SOL share price in focus
Washington H. Soul Pattinson (WHSP) is a diversified investment company with a portfolio of assets across a range of industries and asset classes.
Some of SOL’s largest holdings include stakes in other well-known publicly listed companies such as TPG Telecom (ASX: TPG), New Hope Group (ASX: NHC) and a cross-shareholding in Brickworks (ASX: BKW).
SOL’s aim is to deliver superior returns to its shareholders by creating capital growth and steadily increasing dividends as a holding company. As the second-oldest publicly listed company on the ASX it has developed a strong track record of doing just that. In fact, SOL has never missed a dividend payment since listing in 1903! It could best be thought of as a family-run LIC with directors that are financially aligned with shareholders.
QAN shares
Qantas was founded in 1921 and is today Australia’s largest airline operator by fleet size, number of international flights, and number of destinations.
It’s involved in the operation of domestic and international flights under its Qantas and Jetstar brands, as well as freight services and the management of its frequent flyer loyalty program.
Despite (or perhaps because of) its significant market power, the airline has fallen out of favour with Australian consumers over the last few years, consistently ranking as one of the country’s most distrusted brands according to Roy Morgan surveys. Still, with a huge market share and more services than other airlines they’ve managed to continue growing revenue and profit since the end of the pandemic.
SOL share price valuation
One way to have a ‘fast read’ of where the SOL share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Washington H Soul Pattinson & Company Ltd shares have a dividend yield of around 2.74%, compared to its 5-year average of 2.44%. In other words, SOL shares are trading higher than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends are growing, or it could mean the share price is falling, or both. In the case of SOL, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
QAN is offering a historical dividend yield of around 0.00%, which compares to its 5-year average of 1.22%. Of course, this is just one of many ways you could put a value on QAN shares. The Rask websites offer free online investing courses, created by analysts explaining valuation methods like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s important to look at multiple methods when you’re trying to value the QAN share price.
