Buy Hold Sell: 5 favourite yield stocks

Buy Hold Sell

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 ā€˜Eā€™ 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.


Buy Hold Sell

Buy Hold Sell is a weekly video series exclusively available through Livewire. In each episode two fund managers are asked for their views 'Buy, Hold or Sell' on five ASX listed companies. The format is meant to be short, sharp, insightful and...

Expertise

ASX:CBA ASX:IAG ASX:SYD ASX:TLS ASX:TCL

Comments

Please sign in to comment on this wire.
Medium david s profile photo

David Yabsley

Sydney Airport a Buy? P/E 45.7; PEG on 1yrs EPS Growth 5.078; PEG on 5 yrs EPS Growth 4.481 & Debt/Equity Ratio of 1,403.40 !!

Join the conversation