SHIELD – Sustainable High Yield | Yield for Christmas

We maintain a bullish long term view while short term volatility expected with US Fed raising rates in December. Markets have already started to chase high yielding stocks in an environment of low interest rates and lower growth. Global growth will remain low for longer while central banks provide support to avoid any recession risks. Micro cap VTG is the only low growth cheap yield pick from the SHIELD screen that has average earnings and cash flow per share growth of below 10%, an average of price-earnings and price-cash flow below 10, a dividend yield above 5% and a BUY rating. SHIELD Top 20 picks are: large cap – CBA, WBC, ANZ and TLS; mid cap – WOR; small cap – MLX, IMF, CCV, MOC, PTM, RRL, TME, NEC, IFM, MIN, CWP and SGF; and micro-cap – DDR, VTG and SIQ. (VIEW LINK)