Good Yeilding Stocks

[brisbane 04]

Hi All,
Being an absolute novice in the area of buying shares,I'm sending my post out to those who could assist and share there thoughts.As we all know the sharemarket is taking some big hits at present.In these times however there could be some bargains to be had in regards to future capital growth and yeilding stocks.If anyone would like to share the stocks they believe are presenting good value and why ie yeild return and undervalued stock at present it would be appreciated.The one that has been spoken about is BHP currently worth $31.00 yeilding I think 84 cents per year fully franked.
Thanks Martin

 

[The Y-man]

For a start: Check the history of yields over the past 5 years on any stock you look at.

Look for stability and/or growth in dividend yield.

You should also however look at profits of the company over the same period - make sure dividends haven't been artificially kept high when the company is actually making less or even losing money.

Cheers,

The Y-man

 

[alexlee]

If you're looking for yield, 2.7% fully franked is hardly exciting.

The Big 4 banks are all yielding above 5%, as are some wealth management companies.
Alex

 

[Dazz]

If you're looking for yield, 2.7% fully franked is hardly exciting.

Yeah, I suppose so, but then that is the nett figure....nothing else to pay and absolutely no ongoing headaches.....all professionally reported to you and deposited into your bank account on time as promised....and with the imputation credit to follow as a Xmas bonus, it sure beats the 2.7% gross yields faced by some residential investors (including myself) in the blue chip suburbs.

The Big 4 banks are all yielding above 5%

Exactly - the obvious choice to invest in if you want to make sustained big money....hence why they are all gathered at the top of the market cap. lists over any long period of time. Ruthless money making machines the lot of them. The only company type that only deals with money exclusively.

BHP has to concentrate on mining and money.
Coles has to concentrate on food sales and money.
Toll has to concentrate on trucking and money.
News Corp has to concentrate on media and money.

Banks are the only ones, IMO, that can devote their entire focus & energy to money.

Would anyone else agree ??

 

[BayView]

extortion and money

 

[Patosan]

Banks are the only ones, IMO, that can devote their entire focus & energy to money.

Rather simply but nicely put Daz.

 

[Sunfish]

As Dazza points out it's 2.7% franked and easy. But the companies paying that percentage would be growth companies and 10% growth compounding will improve that return (quoted in dollars) quite a bit. The cap gain remains tax-free till you cash it in which is never, if you use the "never sell" philosophy espoused for RE.

Banks give a higher percentage return because bank shares have no asset backing (well not much) and it is my humble opinion that their poor performance of the last twelve months will continue.

 

[oasis1frog]

Banks give a higher percentage return because bank shares have no asset backing (well not much) and it is my humble opinion that their poor performance of the last twelve months will continue.

True, but what other businesses can treat customers like dirt & charge hefty fees to customers who give money to the business to invest !

 

[Sunfish]

I just look at the charts Froggy.

 

[GreatPig]

LPTs and LICs used to get a good write-up.

I don't suppose that includes Centro, MFS, and AFG (formerly Record Investments) though...

GP

 

[Nathan]

Centro might just be a great investment....

 

[Sunfish]

Centro might just be a great investment....

No. It might be a good gamble. I blew $18k on Cazaley because I thought that they had a watertight case in the WA mining court.

Once you've been bitten by a hunch you are more critical next time.

 

[peteb]

only 18K on cAZ , you must have bought them at around 40cents ....

I bought at 1.40 .....

They did have a water tight case but the WA government blew holes in it ...

 

[mav777]

Hi Martin,
You have options like mpf.
Exposure to aust property with minimal direct subprime exposure.
Yields from memory about 10-11% with a chance of an upside on share price.
Would i put my money on this or just about any stock right now, NO.
Each to their own, however I've closed out most of my positions.
There is the opportunity cost of using your $$ for shares.
The signals form the US aren't promising and for me i like to keep cash close at hand.
Take the time to research and pounce on the next significant drop.
Research different commodities etc. Coal going well, iron ore price currently good, however significant iron ore players coming on stream in the next three years, what will this mean? Supply demand?

Grab a share magazine, check out stocks with good yields and do some research. Have fun and good luck.

P.S. If i buy a stock I'll let you know because you can always pick it up the next day for 5% less

 

[dreaming]

why is it every stock i buy seems to go down and every stock I sell seems to go up? The answer is simple I gamble on penny dreadfuls they pay off good sometimes but if your serious go for the solid performers and you will get a stead income. There does seem to be some good buys out there just now, we'll have to see how reporting season goes.

 

[ManyManeuvers]

my suggestion,
buy a LIC such as Argo (ARG) and get your feet wet (ie: spend up to 30% of money you can afford to lose).... watch what they do with 'your' money, goto the annual general meeting and ask questions of the management about their recent purchases/ sales and why they chose to do this...
http://www.argoinvestments.com.au
(hint: if you choose to buy them, pick them up when there NTA < current price)
NTA = http://www.argoinvestments.com.au/investInfo.php?id=329

 

[ManyManeuvers]

disclaimer, i have been buying ARG for the last 10 years...
i also own banks, energy, telstra, zircon and bauxite mineral companies ... overall mixed results, but have been a good vehicle to grow some savings while i've hesitated on property!