Maximum Net Yield from a diversified portfolio of NZ Stocks.

[Cricketfan]

$60K coming in this coming week ex an ANZ "serious" saver account paying 2.35%, $10K in late June 2017 from term deposit 3.5%, and another circa $40K from super scheme being wound up in circa Nov 2017, all up will be circa $110K.

For a second there I thought those amounts were the interest that your mum was earning! I was thinking if that's how much money she has, it probably doesn't matter where you invest the $110k

[couta1]

Hey Roger, just chuck half the money into Air and the other half into Spark, good returns and nice and simple. All this overdiversification stuff can give you a headache.

[Beagle]

For a second there I thought those amounts were the interest that your mum was earning! I was thinking if that's how much money she has, it probably doesn't matter where you invest the $110k

Hey Roger, just chuck half the money into Air and the other half into Spark, good returns and nice and simple.

LOL if only life was that simple If I remember correctly, classic investment theory suggests that you need a portfolio of at least 13 different stocks in 13 different sectors to obtain a reasonably diversified portfolio, not an easy task on the NZX when one has a focus on high dividend yield.

[noodles]

NZM are cum a 6c final dividend. This is partially imputed
Their interim dividend was 3.5c

So their net yield > 10%

The CEO was a recent buyer of the stock. If it is good enough for the CEO, is it good enough for your mother?

[couta1]

LOL if only life was that simple If I remember correctly, classic investment theory suggests that you need a portfolio of at least 13 different stocks in 13 different sectors to obtain a reasonably diversified portfolio, not an easy task on the NZX when one has a focus on high dividend yield.

15-20 stocks was the figure used under Classic theory. Classic investment theory should always be challenged just like the overuse of Personal protective equipment is now being challenged and found wanting(Healthcare workers used to think wearing gloves for everything was the way to go but now further research indicates less is best) There are only about 6 stocks on the NZX I would now invest in, full stop, let alone 13 in 13 different sectors. PS-I was kinda lateral thinking with the protective equipment example.

[winner69]

I prefer this chart rather than the one peat posted on another thread. ....even though they go hand in hand to some extent

[Beagle]

NZM are cum a 6c final dividend. This is partially imputed
Their interim dividend was 3.5c

So their net yield > 10%

The CEO was a recent buyer of the stock. If it is good enough for the CEO, is it good enough for your mother?

Hi Noodles,

Nice to hear from you. Hmmmmm, good question. I know our mutual friend Crackity likes them a lot too. Print media dying a very slow death by 1000 cuts, an awful thing to say but maybe it'll outlive my dear old Mum so perhaps you have a point, a good cash cow while it lasts ?

15-20 stocks was the figure used under Classic theory. Classic investment theory should always be challenged just like the overuse of Personal protective equipment is now being challenged and found wanting(Healthcare workers used to think wearing gloves for everything was the way to go but now further research indicates less is best) There are only about 6 stocks on the NZX I would now invest in, full stop, let alone 13 in 13 different sectors. PS-I was kinda lateral thinking with the protective equipment example.

I know where you're coming from mate and don't necessarily disagree all that much because as you suggest there is a real shortage of high quality well managed and well directed companies on the NZX but I have to take a diversified approach in this case, I(t's different when you're responsible for investing others money).