SHIELD – Sustainable High Yield | How Lowe can RBA go?
Central bank currency wars, political election cycles and a corporate survival mode will continue to put downward pressure on growth rates and interest rates. The RBA has been pushed into an interest rate easing cycle as deflation worries starts to bite. The global growth worries, weak US data and weak local fiscal policy outlook continues to support lower interest rates for longer than expected. The Australian equity market’s sustainable dividend yield will attract investors in an environment of low rates and low growth. We continue to favour an investment strategy with a dominant sustainable yield aspect due to the weak growth outlook. The sustainable yield (SHIELD) screen aims to identify the best 30 stocks that are most likely to maintain yields at a higher level than 100bps premium to 10-year bonds through a mix of size, risk, quality, growth, yield and value factors. Access the link to find the top 20 stocks for this screen: (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...