Moreover, with the shares trading on a modest 12 times 2013 earnings estimates and the company in a cash-rich position, there is potential for capital upside over time as earnings grow and the dividend is raised. That's because we not only benefit from a regular income stream – dividends are paid on a quarterly basis in March, June, September and December - but if the earnings multiple stays at this modest rating, the share price can be expected to rise in line with the 13 per cent annual growth rate in profits forecast by analysts over the next two financial years. In other words, this is an investment that could realistically provide a conservative total return of around 25 per cent over the next 12 months through a combination of earnings growth and dividends paid.
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