Holding cyclical stocks through the best bit of the cycle

Livewire Exclusive

Livewire Markets

Last year, BHP and Rio both paid a gross yield of more than 13%, a figure that jumps to more than 20% once you include buybacks. Peter Gardner from Plato Investment Management gave Livewire readers a heads up on this opportunity in mid-2018, so we followed up on the theme when we had him in the studio recently.

He is still positive on the big miners and explains here why he thinks “investing in iron ore companies is actually fairly defensive at the moment”, and then goes on to discuss what yield he expects next year. While there’s no denying that resource stocks are cyclical, it sounds like we’re in the best bit of the cycle to own them.

Want to learn more about income?

Plato Investment Management is an Australian owned boutique equities fund manager specialising in maximising retirement income for pension phase investors and SMSFs. To find out more click "contact us" below.


2 topics

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

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.