The point is a 10% return on investment at a $6 purchase price. Where else do you get this sort of income?
My average buy price is $4.27 so I am getting at least 14% gross return.
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That's right, the point is fundamentally things are different now, because of interest rates. And as Peat implies, the possibility that it's headed somewhat north of here is very real as some of those billions of expiring TD's go looking for yield like they've never had to before. I'd been doing pretty well I thought trading this stock since March, but now I wish I'd held every single one.
I stand by my previous comments that buying at $6 now is likely to give you an effective gross return of 12%. If you want to see how I work that out go back a few pages and see my previous thoroughly articulated calculations and reasoning. Its underwritten by 83 cents per share of cash on the balance sheet and a company that's trading well ahead of last year. Surely the best yield on the NZX and has a history of being very reliable unlike many other shares !
The capital is working hardest where it is growing the fastest, not where it is paying the highest dividend.
I'm not offering advice, and everyone's situation is different, I'm just spouting off the top of my head as I mull things over. Also, I still do hold HLG - I tend not to sell unless I develop a really negative view of a company. Leveraged property investment aside, looking back over decades of investment, it is the growth companies that make you money.