At the current share price of Virtus Health Ltd (ASX: VRT) of $5.62, the company sports a dividend yield of 5.0% and that's fully franked.
That's based on the last two dividends paid of 13 cents earlier this year for the first half of 2017 and 15 cents paid in September 2016 – being the final dividend for the 2016 financial year (FY16).
Virtus did have a disappointing first half result with overall market activity falling 6% compared to the previous corresponding half. Competitor Monash IVF Group Ltd (ASX: MVF) also reported softer market conditions and slightly lower revenues in the first half, so Virtus was not the only IVF provider that was affected.
Demand for fertility services is likely to grow steadily over the long term, although there may be periods like the six months to end of December 2016 which are down a bit. Offsetting that is the fact that Virtus also has operations in Ireland, Singapore and Denmark.
As market demand recovers in Australia, Virtus should see higher demand for its services, driving revenues and profits. Rising dividends should follow, making Virtus one to watch for investors looking for growing, fully franked dividends.
