High yield, financially sound stocks (that will benefit from low NZD)

[NZSilver]

Similar to the safe harbour during a storm thread, however more specific to stocks on the NZX markets. Seems exporters (especially those who earn USD cf AUD) are going to benefit with low NZD but also yield stocks. Would really appreciate others thoughts. Thanks in advance.

One I hold is ATM, should benefit with lower NZD, however is still in the middle of its potential t/o and doesn't pay a div. Note others mention IQE and THL.

[stoploss]

Similar to the safe harbour during a storm thread, however more specific to stocks on the NZX markets. Seems exporters (especially those who earn USD cf AUD) are going to benefit with low NZD but also yield stocks. Would really appreciate others thoughts. Thanks in advance.

One I hold is ATM, should benefit with lower NZD, however is still in the middle of its potential t/o and doesn't pay a div. Note others mention IQE and THL.
lol so ATM is not on the list to start with , they have noted a cash raise is needed so financially sound does not work in this case .

[Hawkeye]

STU could be one to look at

[Buffett Jr]

Similar to the safe harbour during a storm thread, however more specific to stocks on the NZX markets. Seems exporters (especially those who earn USD cf AUD) are going to benefit with low NZD but also yield stocks. Would really appreciate others thoughts. Thanks in advance.

One I hold is ATM, should benefit with lower NZD, however is still in the middle of its potential t/o and doesn't pay a div. Note others mention IQE and THL.

Why do you like high yield?

You have to pay tax on dividends. No tax on capital gains...

[NZSilver]

Hopefully low cash yield will drive cap gain on high yield stocks...

[Sgt Pepper]

I would nominate Scales

[Buffett Jr]

Hopefully low cash yield will drive cap gain on high yield stocks...

Sorry don't understand what you mean. Please clarify.

[Crackity]

Sorry don't understand what you mean. Please clarify.

I believe what Mr Silver was alluding to is that if bank interest deposit rates decrease ( which is looking likely - 16 out of 16 polled economists are picking this....) then stocks which are on a high dividend yield should go up in price on the stock exchange - a win win if you already own these stocks....nice dividend and worth more than you paid for them.

i would say look for stable dividend payers - there was a discussion on the HLG thread about this situation a few weeks ago....

[Derain]

Sorry don't understand what you mean. Please clarify.

Maybe he means the rate from term deposit or savings account is so low that it will push people to buy stocks with a comparatively high dividend and thus driving up their SP?
Just my interpretation

[Buffett Jr]

Ok I understand now, term deposit rates, OCR, etc.

I would argue that just because a business has a high dividend yield doesn't make it a good investment in an environment where interest rates are dropping. I would look for a solidly performing business with a lower dividend yield than a sub standard business with a higher dividend yield.

[NZSilver]

Yes you guys are correct, exactly what i meant. Sorry Jr for the confusion.

[trader_jackson]

GNE (although may not benefit from decreasing NZD that much, can't go wrong with a 8% cash dividend, almost 2x best bank 1 year term deposit rate + chance of capital gain, no need for more explanation)

[iceman]

SAN a safe reasonably high dividend yielder with a huge benefit from the lower NZD

[xafalcon]

All electricity generator stocks - MEL, MRP, GNE, CEN once the Tiwai Pt decision is announced within the next 2 weeks

[tim23]

Skellerup - dairy farmers still have to buy rubberwear.

[PointyHat]

Skellerup - dairy farmers still have to buy rubberwear.

I agree TIM23, so does David Mair the CEO (buying@1.30 and 1.28)and ACC who have been topping up recently.

Not only farmers though, but "The decision to strategically grow its presence in the US has been realised
for Skellerup subsidiary Gulf Rubber after it received the prestigious
"Partner of the Year" award from Moen, the #1 tapware brand in North America."

This should be helpful to SKL to diversify a little and also a weak NZ$ would help in that market place.
New premises coming up, 6.8% and hopefully 5c divi shortly, I would think this should be put on the list.

SKL hasn't exactly helped my in the competition but hopefully it might come from the back at year end!

I see this as a high yield at this price and it is sound stock in my opinion. Low NZ$ should help the farmers and SKL?

[Beagle]

^^ I guess there a chance that every dog has its day but the chart looks too sick to inspire much confidence. I don't buy stocks in a confirmed downtrend. Looked at this recently when in the 130's and its just gone from bad to worse despite the precipitous fall of the Kiwi dollar. Maybe the dairy farmers will end up milking by hand :eek2:

[noodles]

I agree TIM23, so does David Mair the CEO (buying@1.30 and 1.28)
You should not put too much weight on David Mair buying. See the notice ... "Non-beneficial interest as shareholder of fund manager"

If he was buying himself, then it would be a different story.

[winner69]

You should not put too much weight on David Mair buying. See the notice ... "Non-beneficial interest as shareholder of fund manager"

If he was buying himself, then it would be a different story.

So no nudge nudge wink wink stuff?

[percy]

So no nudge nudge wink wink stuff?

The wink,wink has seen a steady stream of selling since 3rd March 2014 when the sp was $1.85.
Friday's close was $1.25.
What I am waiting for is the nudge,nudge buying to turn the trend around.

[janner]

Did not know Del Boy or Arfur were into Shares perc....

Be careful ... Know what I mean.. Know what I mean ???...

While I have got your attention.

Have I got a deal for you :-)))

Know what I mean .. know what I mean :-)))))

Wink wink... Nudge nudge :-)))

[percy]

Did not know Del Boy or Arfur were into Shares perc....

Be careful ... Know what I mean.. Know what I mean ???...

While I have got your attention.

Have I got a deal for you :-)))

Know what I mean .. know what I mean :-)))))

Wink wink... Nudge nudge :-)))

Knowing your fantastic deal will only be available for a limited time,to a selected few,would you please send it to me, straight away,via a PM .My operator is standing by for it. Please don't delay,send it now!!

[janner]

Knowing your fantastic deal will only be available for a limited time,to a selected few,would you please send it to me, straight away,via a PM .My operator is standing by for it. Please don't delay,send it now!!

Done !!

Well some one has been :-)))

[tim23]

If one is confident about the dividend then gives plenty of protection of the share price dipping, can just as easily rebound - who saw CAV rebound coming?!

[tim23]

Trouble is Janner you don't get a return from gold or Silver unless a capital gain so its very speculative think people will still use SPK services in good times in bad and companies will keep leasing premises.

[golden city]

thl is the most dividend attractive stock at the moment

[sb9]

Agree gc, Thl is the dark horse in race at the moment.

[Beagle]

Craigs have SCL at a gross yield of 9.2% so shareholders are being paid very handsomely while they wait to enjoy substantially enhanced returns from the lower $Kiwi.
I bought more this morning.

[warthog]

How about WYN/XRO/DIL?

Not for dividends obviously, nor financially sound stocks, but their main revenues are non-NZD-denominated and if their business plans play out the effect will be more positive with a low NZD.

[Beagle]

How about WYN/XRO/DIL?

Not for dividends obviously, nor financially sound stocks, but their main revenues are non-NZD-denominated and if their business plans play out the effect will be more positive with a low NZD.

They need the help from the lower $Kiwi but that's of itself a woefully insufficient reason to invest IMHO.

[iceman]

They need the help from the lower $Kiwi but that's of itself a woefully insufficient reason to invest IMHO.

I don't agree Roger that DIL "needs" the help from a lower NZ$. It makes little difference to the company as their business is not operated in NZ$. But I have little doubt it will help us NZ holders with our investment.

Another couple of shares I think are worth looking into more closely with a lower NZ$ are RBC and TEN.

Discl.: Hold a few RBC

[NZSilver]

Thanks for all the posts, been good reading and its good to be reminded of companies you either haven't researched for a while or forgotten about.

I bought some scl today as well, seems a few macro factors are aligning to see their business have a good year. Looks well undervalued in the medium term. There is good info on the scales specific thread.

Cheers

[Beagle]

PGW - Strange as it might seem with dairy in the doldrums but many of our other exports are going absolute gang-busters at present, (ask any decent sized beef farmer what sort of a year they've had), so PGW's customers will be spending / investing like crazy to make hay while the sun shines from the lower $Kiwi. I think some brokers have taken their EPS estimate for PGW down for no reason next year.

[GTM 3442]

PGW - Strange as it might seem with dairy in the doldrums but many of our other exports are going absolute gang-busters at present, (ask any decent sized beef farmer what sort of a year they've had), so PGW's customers will be spending / investing like crazy to make hay while the sun shines from the lower $Kiwi. I think some brokers have taken their EPS estimate for PGW down for no reason next year.

It will be interesting to see what effect the curtailment of live cattle exports from Australia to Indonesia wil have. That's well over a hundred thousand head who'll need tofind a new home.

So perhaps not so bullish on beef ???

[Beagle]

It will be interesting to see what effect the curtailment of live cattle exports from Australia to Indonesia wil have. That's well over a hundred thousand head who'll need tofind a new home.

So perhaps not so bullish on beef ???

You obviously haven't seen the prices they've been getting sending them to the works.

[xafalcon]

You obviously haven't seen the prices they've been getting sending them to the works. Got a set of accounts here, average price YE 31/3/14 $1,650 + GST in the hand, average price YE 31/3/15 $2,010 + GST. I'd say that's pretty bullish and that's for the year to 31 March 2015 i.e. before the currency fell out of bed :)

Yes, meat has been doing very well for a while now. F14 was a good year for beef, and F15 even better. But the down-side to this is that dairy cattle will be culled in increasing numbers all around the world as the dairy product demand/supply balance is corrected. The sharply lower NZD is a real bonus that will help mitigate the effect on NZ beef farmers. Sheep farmers should do very well, especially with Iran potentially having more money to spend in the near future - apparently the have 45M barrels of oil stockpiled.....

[winner69]

No wonder fillet steak in New World $45 kg today .....National Super doesn't go that far so it was back to the casserole in the slow cooker for tea tonight. Pretty yum though, must have been the dark beer I used.