Equity Income

The effect of Vale’s tragic dam collapse in early 2019 has seen iron ore prices rally. As a result of forced mine closures, the global seaborne supply of iron ore is expected to be 20mt lower in 2019 than in 2018, or 1.2% of the total seaborne market. Despite a... Show More

On 1 April 2019, Woolworths announced a $1.7B off-market share buy-back. The buy-back will have a $4.79 capital component, with the balance being a fully franked dividend. The buy-back will be based on a tender, with investors tendering to sell shares at a discount of between 10% to 14% below... Show More

To be a successful equity investor, there are a few very simple tenets to follow if you want to get a head-start – and these include avoiding underperformers and not getting sucked into yield traps, Plato Investment Management managing director, Dr Don Hamson, said in a recent presentation.Hamson also had... Show More

Interest rates around the world, including Australia, have been falling recently. Where conventional wisdom one year ago was for rising rates, now expectations have factored in domestic rate cuts and falling yields over the next 3 years. Aussie 10-year government bonds are at all-time lows standing at 1.75%. This change... Show More

For the income-focussed equity investor, there are few things that strike fear into the heart more than a dividend cut. The capital losses alone can destroy years of income, and that’s before you even consider the reduced dividend stream. Telstra has fallen nearly 30% since announcing its dividend cut in... Show More

When I was first asked to comment about the ALP’s proposed scrapping of franking credit refunds my response was I was “flabbergasted”. “Flabbergasted” that the party whose Treasurer Paul Keating created franking credits would cut those benefits accruing to retired workers, “flabbergasted” that the Leader of ALP Opposition who earns... Show More

What do Amazon, Buffett and Sydney CBD retail have in common? You know about Amazon and its potential to destroy retailers. While Amazon’s Australian launch last December was somewhat underwhelming, one could consider it a ‘soft’ launch. Whether it’s next year or next decade, odds are Amazon will get its... Show More

Mining 101: a good mining company makes money at the low end of a steep cost-curve. This is BHP’s strategy and it is working wonders in iron ore. However, in 2011 BHP forgot this simple rule. Deal hungry and with cash flow burning a hole in the pocket after two... Show More

Woolworths, BHP, and Telstra have cut dividends in recent years, and the long-term sustainability of dividends from other leading stocks is under scrutiny. So Livewire asked three experts to share an example of a company that offers diversification away from ‘traditional’ income stocks - and provides a sustainable yield. Read... Show More

The old saying goes; ‘there are two sides to every trade’, but in the case of Telstra, we have three. In this second part of our equity income series, we take a close look at Telstra following the announcement of the upcoming dividend cut, and the associated share price fall. Show More