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Saturday 26 September 2015

As Good As It Gets | Dividend Yield Growth

The Australian Stock Market now has some great companies that are offering some great yields.

Woolworths WOW , Commonwealth Bank of Australia CBA  and Telstra TLS have a grossed up yield above 7%.  See table Source www.dividends.com.au

It’s extremely rare in historical terms, that the market gives you such great buying opportunities.

So why would you put up with 2% on your term deposit, or something similar on a Real estate property?

I can’t help feeling that there is a great truth underlying the market at the moment that has a parallel with my health.

After 3 months on Keytuda, my tumours have stabilised.

We all like things to be perfect, but maybe this is as good as it gets!!

There seems to be still plenty of talk that interest rates are going to drop again, not great news for the SMSF herd that are currently terrified of the stock market, and looking for every possible yield vehicle, note, fund or derivative that anyone will offer, that doesn't actually involve the ownership of a share in a company, almost a paranoia against the share market.

The current correction has driven the share prices of many good companies to generational lows in PE and highs in yield terms.

This has to be great news for a long term investor.

At some stage things have to snap back to reality, interest rates from banks are remaining low, and could be going lower.

The fear will leave this market and good companies that yield well, with growth potential will thrive.

The love of real estate will be tested and soften, as real-estate yields are now below stocks.

My sentiments remain, this market is a buy!!





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