Investors buoyed by dividend prospects at TechnologyOne

Investors in Brisbane-based software company TechnologyOne have been buoyed by the prospect of continuing strong returns after it announced an additional special dividend to go with impressive profit growth for 2010.

The company said that an additional special dividend of 1.5 cents will be paid, taking the total dividend for the year to 5.7 cents per share (up 52 per cent on the prior year), which, based on a share price of 95 cents, represents a fully franked dividend yield of six per cent.

This is a result of the company's strong balance sheet, continuing growth and confidence in the future, TechnologyOne said after reporting its seventh consecutive year of increasing revenues and licence fees for the year ending 30th September 2010.

"It is interesting to note that while TechnologyOne remains a high growth company, it will also now be a high dividend paying company," said executive chairman Adrian Di Marco.

"The board has indicated that it will continue to consider paying a special dividend in future years if cash reserves remain high, growth continues as is expected, and there is no compelling alternative use for the cash reserves."

Investors aiming to boost their returns could also choose to compare term deposits in search of the best options. Earlier this week, Maritime Super announced the launch of a new fixed-term investment option from December 1st 2010 which aims to combine superannuation savings with a term deposit structure.

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