Originally Posted by
Baa_Baa
I'm not sure how yield can be misleading, yield is simply a mathematical calculation. The lower the share price, the more attractive the yield becomes, particularly for a company with free cashflow that accumulates in a low/no growth investment, which is paid out as dividends to shareholders. The yield may never be better than it is/was for IPO buyers, but there will be plenty of kiwi investors interested in the yield opportunity as MEL's share price declines to a mathematical attraction. Not everyone here is fixated with company growth, if they are they probably wouldn't be looking at the energy sector. These energy company's just make a lot of money over and above that which is required to run the company and pay out a handsome percentage to investors. Is that the definition of a yield play?