income investing

Jason Teh

It’s obvious. Retirees need income. With cash and fixed interest offering low yields, equities are a good place to look for income. On the surface, it may seem easy creating an income portfolio from shares – just select stocks from a list of high dividend yielders. However, setting up an... Show More

Livewire Exclusive

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

Damien Wood

The argument usually comes down to Connery or Craig. Both highly popular James Bonds brought different styles to the big screen. The “best” 007 actor, though, maybe more a case of which one best suited the social environment of the time. For investors, the best bond, similarly, largely depends on... Show More

Investors Mutual

There’s a misperception that equity income investing is as easy as ranking the market’s highest-yielding stocks and building a portfolio from that basis. While on the surface stocks that yield in excess of 7% might look attractive, it may be a complete illusion if one looks closely at the market’s... Show More

Hugh Dive

The world is in a period of low growth and political uncertainty (Brexit, Hung Parliaments, Donald Trump et al.) Property as an investment class has performed well in this environment and is expected to continue to do so with lower interest rates and the largesse of central banks continuing to... Show More

Livewire Exclusive

Tim Hannon, Chief Investment Officer at Newgate Capital, thinks ‘yield’ stocks present significant risks in the current environment. “Sometimes high-yield is an extremely risky proposition.” He is concerned about the proliferation of high-yield ETFs and managed funds, as well as direct investors, bidding up the prices of these high-yield stocks... Show More

Clime Asset Management

What did the latest reporting season tell us about the course of future dividends? The season continued the theme, which started in 2012, of dividend growth outstripping earnings growth. During this period, listed Australian businesses have generally focused on “cost-out strategies” rather than investing for growth through the business cycle. Show More

Livewire Exclusive

With returns on cash at historic lows, many income-seeking investors are looking to the share market for its higher yields. This is not without its risks, though, as BHP shareholders found out earlier this year. Dr. Don Hamson, Managing Director at Plato Investment Management, says a lot of investors are... Show More

David Bassanese

With interest rates still very low around the world by historic standards, the chase for yield among investors remains intense. The need for decent income returns is all the more pressing considering Australia’s population is getting older and more are entering retirement. The good news for Australian investors is that... Show More

Livewire Exclusive

Goldman Sachs says a combination of yield + growth has significantly outperformed a pure high yield strategy in the past 15 years. Livewire asked 4 contributors “What’s one stock in your universe that best fits the bill of yield + growth and why will it continue to flourish?” Show More

Livewire Exclusive

Within our universe we think the market is incorrectly pricing a ‘yield + growth’ situation for a company called National Storage (NSR). NSR generates income from its portfolio of ~80 self-storage sites across Australia, distributing to investors bi-annually. Future earnings growth is generated from increasing rents, as well as further... Show More

Livewire Exclusive

Spotless is a leading provider of integrated facility services in Australia and New Zealand. Spotless has dominant market industry positions, good revenue visibility driven by long term contracts of 5-10 years and very low customer concentration with no single client representing more than 5% of turnover. We are attracted to... Show More

Livewire Equities

Omkar Joshi, Investment Analyst at Watermark funds says that banks have not deleveraged, they have anaemic profit growth and now appear expensive. “Banks have re-rated significantly and are now trading at historically high PE multiples. Higher capital requirements would likely hurt the ability of the banks to continue delivering high... Show More

Livewire News

Research from Goldman Sachs points to dividend yields as being the key component to stock-based gains for the foreseeable future. Essentially, with US equities at all-time highs, Goldman says dividends will be the "sole contributor to total return during the next 12 months". The investment bank also said the “market... Show More

Livewire News

“S&P Dow Jones Indices reports the average performance of the dividend payers in the S&P 500 Index have lagged the non payers by a wide margin, both year to date and over the course of the past twelve months as of April 30, 2015. For the one year period the... Show More