Suncorp remains a key pick

About the author:

Author name:

By Scott Murdoch

Job title:

Senior Analyst

Date posted:

12 September 2013, 9:59 AM

Sectors Covered:

Diversified Financials, Professional Services

Suncorp Group (SUN) remains our key pick in the Insurance/Diversified Financials sector and a High Conviction stock.

We believe Suncorp has capacity to return further capital via a special dividend in 2H14 (12 months time) of around A$300m, or 23cps.

Further to an attractive yield and potential special dividend - SUN has de-risked the business, is well capitalised for growth, has cost-out benefits to deliver and a diverse earnings base which should deliver ~8% underlying EPS growth pa.

We have a buy recommendation on Suncorp, which can deliver both yield (5.5% ff FY14) and growth over the next three years.

More information

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