MIDAS STOCK TIPS UPDATE: Palm Oil Is A Controversial Commodity But MEP Evans Is Proud Of Sustainable Manufacturing And Profits Are Rolling In
Palm oil is a controversial product, but Indonesian plantation owner MP Evans prides itself on sustainable production, careful planting, good treatment of workers and support for local communities.
The company aims to take care of investors too, by maintaining or increasing its dividend every year for the past quarter-century.
This year will be no exception. Last week, chairman Peter Hadsley-Chaplain revealed a 588 percent increase in half-year profit to $41 million (£30 million), chairman Peter Hadsley-Chaplain announced a doubling of the interim dividend to 10 pence and promised the annual payout with 36 percent to 30 pence.
Controversial: MP Evans prides himself on sustainable production, careful planting, fair treatment of workers and support for local communities
Further increases are expected in the coming years. The palm oil price is rising and MP Evans is in growth mode, increasing production, opening new factories and buying more land to ensure further expansion.
Hadsley-Chaplain joined the company in 1988, after his father had worked there for 41 years.
This nearly 80-year connection gives him a special perspective, focused on steady and consistent expansion.
Midas verdict: Midas tipped MP Evans in 2011 when the shares were £4.20. The price has increased and decreased since then, but closed last week at £7.88, with investors enjoying decent dividends. Existing shareholders must remain with the company. New investors can also stick their nose in it.
Traded on: TARGET ticker: MPE Contact: mpevans.co.uk or 01892 676146