Yield shares
- Thread starter crc_error
- Start date
If you would consider a (small cap) Gold related share, check out RCO. They are looking at returning some of their royalty returns to shareholders. Share price currently 48c, they have bandied about a 3c figure which I calculate to be 6.25% yield (and they mention that they would be looking to do it FF). Pretty unheard of for a Gold share to return a decent yield. Of course it is not yet guaranteed, see page 4 of Dec quarterly:
http://www.asx.com.au/asxpdf/20100128/pdf/31ncqvjl17zy1l.pdf
Also they are currently trading at less than tangible asset value (cash/bullion/royalty valuation).
P.S. DYOR, not a recommendation.
http://www.asx.com.au/asxpdf/20100128/pdf/31ncqvjl17zy1l.pdf
Also they are currently trading at less than tangible asset value (cash/bullion/royalty valuation).
P.S. DYOR, not a recommendation.
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I've got a heap of AAD. Ardent leisure. Main asset Dreamworld.
It would be regarded as a dog currently. Hasn't done real well. Got to nearly $4 at the market peak, but now $1.40. But I bought mine for 63c per share 8 years ago and I have received $1.10 in dividends so far, so it's been no dog for me. Currently paying 12 cents dividend, for a yield of 8.4%.
Apparently due to the high Aussie dollar, people are going to stop going to dreamworld and go overseas instead, And overseas visitors can't afford to come here anymore. But everytime I go to dreamworld the place is packed chockers and getting worse. AAD also owns tenpin bowling centres and marina's and health/fitness centres.
See ya's.
This is not advice.
Anyone who takes free advice about shares from a farmer on a property forum deserves to lose all their money. I am also obviously just ramping this stock hoping to offload to some suckers.
It would be regarded as a dog currently. Hasn't done real well. Got to nearly $4 at the market peak, but now $1.40. But I bought mine for 63c per share 8 years ago and I have received $1.10 in dividends so far, so it's been no dog for me. Currently paying 12 cents dividend, for a yield of 8.4%.
Apparently due to the high Aussie dollar, people are going to stop going to dreamworld and go overseas instead, And overseas visitors can't afford to come here anymore. But everytime I go to dreamworld the place is packed chockers and getting worse. AAD also owns tenpin bowling centres and marina's and health/fitness centres.
See ya's.
This is not advice.
Anyone who takes free advice about shares from a farmer on a property forum deserves to lose all their money. I am also obviously just ramping this stock hoping to offload to some suckers.
Yeah AAD looks ok to me too, though they're growth prospects for the next couple years don't look brilliant. The health clubs may have a fair bit of room to grow though. For the lower growth you'd want a bigger yield to compensate somewhat.
CRC, you can also check out QBE (though franking is only 20%), plus as you mentioned the banks - I like ANZ personally due to their Asian expansion plans. There are also other like TLS and TAH - but the high yields come along with their higher risk businesses at present (ie. TLS low growth/regulatory risks, TAH potentially losing much of their pokie income etc).
I opt for other stocks where the yield or franking may be a little lower now, but the growth prospects are very good. But that's just me.
CRC, you can also check out QBE (though franking is only 20%), plus as you mentioned the banks - I like ANZ personally due to their Asian expansion plans. There are also other like TLS and TAH - but the high yields come along with their higher risk businesses at present (ie. TLS low growth/regulatory risks, TAH potentially losing much of their pokie income etc).
I opt for other stocks where the yield or franking may be a little lower now, but the growth prospects are very good. But that's just me.
Not a lot being offered is there? And I can't add anything either so that indicates to me that our market is fully priced. If interest rates rise the way some fear, savers and retirees will be able to double (2% to 4% on passbook accounts is no big deal, but it is still double ) returns from the bank so BHP (and other's) pathetic dividends will be less attractive and their prices will stagnate until PERs drop
I still don't think a property investor should decide to get some shares and then just buy the banks. Their performance is closely correlated to property so you get no diversification. Their div's look decent but they pay out a high percentage of profits. Their PERs (last time I looked) were around twelve which is too high. Traditionally they are below 10, and for good reason. (They don't actually OWN much other than a brand and a computer.)
I'm a big believer in being knowledgeable in more than just "buying houses" though. Therefore it is always a good time to buy shares, just not with 100% borrowed funds.
They are not my style but Cochlear or CSL are good growth and Ceramic Fuel Cells is a "green" stock with promise. AGL is a safe utility. None of these have correlation to the property cycle. No one here would suggest to a newbe to go out and buy the first house he sees. You must be discerning, and so too with shares and just looking for enough dividends to pay interest is simplistic.
In the interest of disclosure I have a small holding in one of the stocks mentioned.
) returns from the bank so BHP (and other's) pathetic dividends will be less attractive and their prices will stagnate until PERs drop I still don't think a property investor should decide to get some shares and then just buy the banks. Their performance is closely correlated to property so you get no diversification. Their div's look decent but they pay out a high percentage of profits. Their PERs (last time I looked) were around twelve which is too high. Traditionally they are below 10, and for good reason. (They don't actually OWN much other than a brand and a computer.)
I'm a big believer in being knowledgeable in more than just "buying houses" though. Therefore it is always a good time to buy shares, just not with 100% borrowed funds.
They are not my style but Cochlear or CSL are good growth and Ceramic Fuel Cells is a "green" stock with promise. AGL is a safe utility. None of these have correlation to the property cycle. No one here would suggest to a newbe to go out and buy the first house he sees. You must be discerning, and so too with shares and just looking for enough dividends to pay interest is simplistic.
In the interest of disclosure I have a small holding in one of the stocks mentioned.
We go overseas rather than to Queensland these days, partly because of price.
I hold these as well. Happy to sit at these levels, however i should note that Goldman Sachs is forecasting the next two dividends to be a total of 10.5c, ie dividends dropping, before recovering in 2011.
So maybe to be conservative base your investment decision on 10.5c.
There is also small tax benefits attached to the distribution, so gross ylds are higher.
An opportunity may arise in comming months to acquire one of australia's favourite mum and dad stock: WOW (woolworths).
At the moment food price inflation is reversing, this could put pressure on sales numbers, and with the market having a short term view on things, the share price could come back to level closer to its intrinsic value.
Whilst not a high ylder, if price comes back, it could be a reasonable yld, supported by a defensive industry and with reasonable dividend cover (so you have comfort that what you think you will receive in the future, you will actually receive). This is important for dividend security.
At the moment food price inflation is reversing, this could put pressure on sales numbers, and with the market having a short term view on things, the share price could come back to level closer to its intrinsic value.
Whilst not a high ylder, if price comes back, it could be a reasonable yld, supported by a defensive industry and with reasonable dividend cover (so you have comfort that what you think you will receive in the future, you will actually receive). This is important for dividend security.
