Quintessentials: The continuing “search for yield”

Bell Potter


The Australian share market is currently offering a 4.5% yield (80% franked), which is slightly below the long-term average of 4.6%. However, grossed up for franking credits, the dividend yield is 6.0%, which is well above 90 bank bills (1.8%), the 10-year bond yield (2.8%), and 12-month term deposits at the major banks (~2.4%). In this market, we believe the updated Quintessential yield stocks offer relatively high and believable dividend yields. The stocks must satisfy these criteria: 1) Market capitalisation of at least $1 billion, 2) Forecast FY17 dividend yield of at least 4.5% fully franked, 3) Earnings and/or dividend growth in FY17 & FY18, 4) A dividend cover ratio of at least 1.2 times, 5) A strong balance sheet, 6) A 'buy' or 'neutral' rating from the analyst. Find out which 12 ASX stocks meet these criteria in the video below.

Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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.


Please sign in to comment on this wire.