Rcl Foods (JSE: RCL)

Food's not going away, neither am I.

@jozi_janet ja, volumes holding is the thing. if people stop buying chicken we've got bigger problems anyway.

Morning all, stage 4 tonight so.

@easystreet_jse poultry's been rough, but RCL's got the volumes holding

all my poultry stocks are getting hammered this year

Been holding RCL for years, it's the chicken and mince you buy at Pick n Pay basically. Dividends have been decent and food isn't going anywhere in SA, so I'm not selling on a dip.

Yeah so RCL does the chicken and beef that ends up in Pick n Pay and Shoprite, plus they mill grain and make stuff like Spog and these brands most people buy without thinking about it. The thing is food inflation's been hitting them hard but people still need to eat, so it's not like demand disappears. At 7.30 I reckon there's value here if you can stomach the volatility.

Pulled the latest results, margin pressure real but volumes holding up.

@oom_frik_explains ja, that tax-free thing makes sense now, dankie

The company makes money selling chicken, beef, flour and packaged food to shops and restaurants across South Africa, then the profit from all that either gets reinvested back into the business or handed to shareholders as a dividend, which is basically the company saying thanks for owning our shares, here's a slice of what we earned. Right now RCL's been reinvesting rather than paying out much because they've been working through losses, but once the turnaround sticks and profit comes back, that's when the real return happens for patient holders.

Step one, if you want to try RCL with R500, EasyEquities will do it for you, fee sits around R15 to R20 depending on the day. Money lands in your account in maybe two or three days after you transfer it from your bank, then your buy order goes through in seconds during market hours.

@oom_frik_explains that tax-free point is solid

so a dividend is like interest from my tax free account, or is it different?

Do you think the volumes coming back means people actually believe in the turnaround, or are they just chasing the price up. RCL's been losing money for years, so at what point do we see actual profit again.

You don't need much to start. On EasyEquities you can buy RCL with R100 or R500, the fee is around R10 to R15 depending on the amount, and your money lands in your account in a day or two. Good question if you're wondering whether to use a tax-free savings account, by the way, that just means the growth sits tax-free up to R36,000 a year, so most people stick their long-term buys there.

RCL's basically feeding the country, poultry to milling to the stuff Shoprite stocks. If people keep eating, they keep buying, and that's not changing anytime soon.

@mpho_teaches spot on, that's the shape of it.

@mpho_teaches last dividend was around 16 cents per share I think, but check the latest SENS announcement to be sure, they usually pay twice a year.

RCL's chicken and milling business feeds half the country basically, so when food inflation eases they should print money. At 7.30 the yield looks decent if they keep the dividend up.

So RCL makes chicken, beef, flour, all the stuff we buy at Shoprite and Pick n Pay. When they sell that food and make profit, sometimes they give part of it back to people who own shares, that's a dividend. Does anyone know what RCL paid last time?