SPK- Spark NZ (TELCO)

[SailorRob]

Not true. Spark has not underperformed cash over 31 years




I think you are starting to get where the real measuring stick for Spark shares should be set.



The share price has been up and down but there has been no massive permanent decline as you suggest. Unless you deliberately pick a peak and a trough to make your (false) point.



Not every investor wants all of their portfolio 'operating to the max' to get outstanding growth. Sometimes having part of your portfolio that produces a steady income return is more the ticket. I guess 'corporate bonds' could provide such a solution. But not being a bond investor myself, I think of my Spark shares as a kind of defacto bond.

Of course, Spark have their own bonds. The SPF570 bond last traded on the market at 5.17%.

OTOH the 'Spark shares bond' last traded on an historical gross dividend yield of (27/0.72) / 423 = 8.87%

So SPF570 at 5.17% or SPK at 8.87%? Hmmm, I seem to be having some difficulty in making up my mind here. Which 'bond' should I choose SailorRob?

SNOOPY

What's the duration of the bond?

For me I wouldn't touch Spark equity no matter the yield, so I'd pick the bond every time and over 15 years I would not be comfortable holding the bonds either, I'd take big Grants 10 year over spark, no brainier.

[ValueNZ]

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So SPF570 at 5.17% or SPK at 8.87%? Hmmm, I seem to be having some difficulty in making up my mind here.

That's a false dichotomy. Your options to allocate capital extend far beyond Spark lol.