yield

Generating income from shares

Stephen Bruce

Traditionally, when seeking income, investors have turned to fixed income investments such as term deposits or bonds. However, persistently low-interest rates have seen investing in higher yielding stocks become an increasingly popular strategy for investors seeking to generate an income stream. Show More

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Hybrids vs Equities: How Does Risk vs Return Trade-Off Stack-Up?

Christopher Joye

Two quick charts looking at the risk and return trade-off between ASX equities and ASX major bank hybrids. The first chart considers the current cash (unfranked) and fully franked dividend yield on the ASX200 index versus a range of major bank hybrid yields in both franked and unfranked terms. The... Show More

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Defensives: Perception vs Reality

Jason Teh

Are Australian bond-like proxies going to suffer a bondcano moment? Certainly, stocks that have defensive characteristics have been sold down in recent months. And bond bears would have it that they are collateral damage from rising US yields. However, we believe this is a false narrative. Hence, we need to... Show More

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How to spot a sustainable dividend

Dermot Ryan

On average, companies in the top 10 per cent of expected dividend yield deliver negative earnings growth, negative dividend growth and underperform the market over time, our analysis suggests. To find the companies with genuinely sustainable dividends, you need to dig much deeper than these simple historical measures. Show More

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Why we’re thinking about yield all wrong

Greg Maclean

While it makes sense for individual investors to look to institutions for cues and clues to inform how they invest – or at least how they think about the world they invest in – sometimes it really doesn’t. Show More

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Livewire Summer School: November rain, and insurance claims

Livewire Exclusive

Guns N’ Roses released their first debut album titled “Appetite for Destruction” in July 1987. Three months later one of the most violent and unexpected equity market corrections in US history occurred. The Dow lost 22.6% of its value on Black Monday, and the causes behind the dramatic fall are... Show More

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High-yield bonds and investment-grade bonds: How to balance them

Elizabeth Moran

High yield bonds are tempting but come with greater chances something could go wrong. This wire gives some tips in getting the balance right between high yield and investment grade, and displays a sample portfolio for both strategies. Show More

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Wilson and Aitken dissect Telstra

Buy Hold Sell

There was a time when Telstra was a staple of almost every Australian investor’s portfolio. Stable earnings and a big fully-franked yield meant that it never had problems attracting buyers. Things are different now. After cutting its dividend in August, Telstra is now down >30% year to date. Show More

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The yield trap of 2017

Daniel Mueller

Want to know the biggest yield trap of 2017? Each year there are dividend plays that turn out to be yield traps. In 2012, it was QBE. During 2012 to 2014, we saw several consumer stocks turn out to be yield traps including Seven West Media, David Jones and Myer.... Show More

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Buy Hold Sell: 5 stocks with sustainable yield

Buy Hold Sell

High dividends often steal the limelight, but as holders of Telstra have recently learned, a sustainable dividend is every bit as important. This week’s Buy Hold Sell features Vince Pezzullo from Perpetual and Matthew Haupt from Wilson Asset Management. Show More

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A world of opportunity

Nathan Bell

After eight years of falling interest rates and quantitative easing, most investors are wondering how long before the next great fall and when it will happen, mostly so they can dump their shares and avoid the pain suffered during the GFC. Show More

Buy Hold Sell: Big stocks with big yields

Buy Hold Sell

With both government bonds and bank accounts still returning less than 3%, investors continue to turn to the stock market for yield. In this week’s Buy Hold Sell, Catherine Allfrey from Wavestone and Chad Slater from Morphic share their view on five big-cap stocks with big yields. Show More

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Sunset Strip > Trading Day Wrap From Blue Ocean 20170706

Mathan Somasundaram

Local market was aimless and flip flopped with US futures all day to finish mainly flat. Currency, Commodity and global sentiment remains weak. The historical trend suggests were likely to remain in this up and down trading days till the last week of July. The best performing sectors were IT,... Show More

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Why I wouldn't invest in India

Mugunthan Siva

Last week, Apple CEO Tim Cook told analysts that “India is moving fast. They are moving at a speed that I have not seen in any other country in the world.” Despite this and many other positive endorsements, investors often procrastinate and identify reasons not to invest in India’s growth.... Show More

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Gold - Q1 Review.....More Upside to Come?

Jordan Eliseo

Today’s rally notwithstanding, gold has had a relatively low profile start to 2017. This is in stark contract to a year ago, when a volatile stock market and the surprise implementation of NIRP in Japan led to range of optimistic forecasts and proclamations of “a new bull market in precious... Show More

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Lessons from 2016’s best and worst performers

Livewire Exclusive

The lists of the best performing and worst performing stocks in the ASX200 during 2016 told a dramatic narrative of a reversal of fortunes between growth stocks and resource stocks. One month into 2017, and we have evidence of this continuing. BHP and RIO are up 11.2% and 14.4% year-to-date... Show More

3 ‘Cheap’ Income Stocks

James Gerrish

We’ve written that the ‘yield trade’ will struggle in 2017 and we still think that will be a case. However, sentiment will ebb and flow, and we need to be looking in places that might not have been on the radar in the last few years and are therefore still... Show More

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The Dawn of a New Era of Value Investing

Clime Asset Management

The first half of FY2017 has certainly delivered some unexpected outcomes - Donald Trump's election as the 45th President of the United States and the following positive market reaction stunned the world. Amidst the resulting volatility in bond and equity markets lies a wealth of opportunity for those who care... Show More

The perils of the low rate world

Jacob Mitchell

Generational low interest rates are symptomatic of lower growth and inflation, made acute by central banks reacting to structural factors such as ageing populations, integration of savings rich economies into the world economy, offshoring and more recently deleveraging and excess export capacity. Increasingly, there is mounting evidence that distortions are... Show More

GARY Glitter (Growth And Reasonable Yield)

Marcus Tuck

One theme we have explored in the past is the search for stocks that have a good combination of dividend yield and earnings growth, the so called GARY stocks (Growth And Reasonable Yield). We think that continues to be a sensible strategy and have screened the ASX 100 universe for... Show More