Peter Quinton, Director of Research at Bell Potter, has released his latest update on preferred yield stocks
Peter Quinton, Director of Research at Bell Potter, has released his latest update on preferred yield stocks. Quinton notes, after the 12% rise in the Australian share market since late June, the average 2014 dividend yield of 4.7% is now only slightly above the long term average of 4.6%. However, this dividend yield of 4.7% (around 80% franked) is equivalent to a grossed-up dividend yield of 6.3%, which is still substantially above the current 90-day bank bill rate of 2.7%, the 10-year bond yield of 4.2%, and bank 12-month term deposit rates of around 3.3%. Quinton has recently added Premier Investments to his pool of preferred dividend stocks highlighting a yield of 5.1%, 100% franking and dividend per share growth of 15% (FY13 - 15). Other picks include the Big Four banks, AMP, GPT, APA Group and Southern Cross Austereo.