Buy Hold Sell: 5 favourite yield stocks

Buy Hold Sell

Livewire Markets

Income investors once turned to high-yield stocks as the income from traditional sources dwindled. But what should holders of those high yield stocks now do as bond yields creep back up again? As yields on the two asset classes converge, equities become relatively less attractive, and analysts have to use higher discount rates, which also hits stock valuations. Against this backdrop, we put 5 favourite yield stocks to the test this week. So tune in as we ask Stuart Welch from Alphinity and Omkar Joshi from Regal Funds Management to review Transurban, Sydney Airport, CBA, Telstra and IAG, in this latest exclusive from Livewire Markets.    

 

Key points 

Transurban: Dilution to shareholders if the WestConnex bid succeeds, or new competition crimping growth prospects if it fails: Is it a lose-lose proposition for investors? 

CBA: Is operating in a tough market which is cooling and faces regulatory issues. However with a reasonable yield, is there a short-term opportunity from here?   

Sydney Airport: Good exposure to the Asian middle-class thematic, and the company has good revenue initiatives. How much is priced in though? 

Telstra: Might look like a bargain on a single digit PE... but is the ‘E’ in the ratio going to materialise? 

IAG: A solid exposure to the domestic insurance industry, but is the valuation getting up there now?

Want more?

You can access all episodes of Buy Hold Sell here

Not an existing Livewire subscriber?

Register here at no cost to gain full access to Livewire's premium investment content.

 

 

 

 

 

 


5 stocks mentioned

2 contributors mentioned

Buy Hold Sell

Buy Hold Sell is a weekly video series exclusive to Livewire. In each episode two fund managers give their views 'Buy, Hold or Sell' on five ASX listed companies. Not recommendations, please read the disclaimer and seek advice where appropriate.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.