Mathan Somasundaram

The Australian equity market’s sustainable dividend yield will attract investors in an environment of low rates and low growth. The GARY approach allows the investor to get the exposure to recovering growth with the protection of the yield thematic. GARY (Growth At Reasonable Yield) screen allows us to pick stocks with good yield, good growth and cheap value multiples compared to the overall historical market trend. Resources and related Service stocks carry higher risk due to global growth worries while Property related stocks carry the bubble risk. GARY Industrial picks are: large cap (QBE), mid cap (QAN), small cap (FXL, CWP, GDI, RFG, NEC and VLW) and micro cap (MYS). GARY Resource and related picks are: none. (VIEW LINK)



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