An enhanced yield strategy

A pure dividend yield approach to investment has generated substantial share price gains. At least, until the last 12 months. We expect the pure dividend yield approach to generate lower total returns over the coming years. We’ve developed an enhanced yield strategy, which combines currently attractive dividend yields, together with high dividend growth over the next two years. The criteria we look include a market cap of at least $500m; a 2016 dividend of at least ~4.5%; dividend per share growth of at least 10% over the next two years; high franking levels; a strong balance sheet; and an analyst rating of either neutral or a buy. In this video Peter Quentin, our Head of Research Services explains which nine stocks which meet all these criteria.