Fleetwood's (ASX:FWD) Shareholders: Get Ready for a Bigger Dividend!

As a Fleetwood (ASX:FWD) shareholder, you're in for a treat! The company has just announced a significant increase in its dividend, with a fully franked dividend of $11.5 per share, nearly five times the previous year's first half dividend. This substantial increase is a testament to the company's financial stability and growth, driven by several factors that have contributed to this exciting news.

Firstly, Fleetwood's revenue grew by 19% due to contract wins in the Building Solutions segment and 71% occupancy in the Community Solutions segment. This impressive growth, coupled with a 65% surge in Earnings Before Interest & Taxes (EBIT) and a nearly threefold increase in Underlying EBIT, has led to an 18% increase in Net Profit After Tax (NPAT). This strong financial performance has enabled the company to distribute more cash to shareholders in the form of dividends.

Secondly, Fleetwood's cash flow position has remained robust, with a free cash flow of $21.6 million and a closing cash position of $57.5 million. This solid cash flow position, combined with a target cash conversion rate of 90% to 100% and consistent capital expenditure (CapEx) numbers, further supports the dividend increase and its sustainability.

Lastly, the company's strategic focus on Building Solutions and Community Solutions has played a significant role in driving the dividend growth. The Community Solutions segment showed strong performance with EBIT of $16.8 million on $33.5 million of revenue, driven by high occupancy rates. The Building Solutions segment saw EBIT more than double to $7.1 million, supported by a strong order book and improved project execution. These segments' robust performance has contributed to the company's overall financial health and its ability to increase dividends.

In conclusion, Fleetwood's (ASX:FWD) shareholders have much to celebrate with the recent dividend increase. The company's strong financial performance, cash flow position, and strategic focus on Building Solutions and Community Solutions have all contributed to this exciting news. As a shareholder, you can look forward to enjoying the benefits of this increased dividend, knowing that the company is committed to returning value to its shareholders while maintaining a strong financial position. So, Fleetwood shareholders, get ready to enjoy a bigger dividend – you've earned it!