The market is underestimating AGL
In the medium term, AGL Energy (ASX:AGL) is best positioned to deliver reasonable growth, yield, and value. Strength in wholesale electricity prices will drive the company's growth in the next few years. Its dividend is highly sustainable and is poised to rise given that its dividend payout ratio is around 60%. And importantly, it offers good value because the stock market is underestimating the company’s operating leverage to wholesale electricity prices. (Jason Teh, Portfolio Manager)
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Investors Mutual Limited (IML) is a specialist Australian equities fund manager and was established in May 1998 by Anton Tagliaferro. Based in Sydney, the IML team applies a conservative value-based investment style with a long-term focus.