SHIELD – Sustainable High Yield | Yield trade to benefit from growth risks and volatility

Despite the short term negative sentiment in yield stocks on the back of global investors selling, investors will start 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. Small cap CCP 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, TLS and MPL; mid cap – FLT and PPT; small cap – IMF, MOC, CCV, PTM, RRL, IFM, CWP, SGN, NEC and AGI; and micro cap – VTG, NCK and SIQ. (VIEW LINK)