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Although the narrowing of the yield-gap and the falling AUD has fuelled the departure of foreign carry-traders, CIMB believes that the yield-theme remains strong. The broker reports that the net yield on CIMB's top-20 preferred Australian yield-stocks is still 190bps above the rate on ten-year government bonds. Interestingly, Macquarie's yield-model has shown that, since 2010, stocks providing a positive dividend surprise have outperformed the market by an average of 3% in the following quarter and 6% in six-months. Macquarie expects the following stocks to provide a positive dividend surprise in August: (CRZ), Flight Centre (FLT) and Breville (BRG).


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