Defensive NZ Stocks

[goingtobe]

Given the current state of play of the NZ share market/economy there is now a continual reference to buying "Defensive Stocks", and even better, "Defensive high yeilding stocks".

I would be interested in you opinions about which NZ stocks meet these criteria. CEN is one that is often mentioned, what about others.

ANZ WPT

[scamper]

Hi goingtobe
KIP and HLG are two of my holds that I consider defensive. Both have the advantage of being relatively immune to overseas kerfuffles -- wars, oil prices, labour strikes, terrorism etc.

Hlg has a 13 cps share divi coming up with the record date 15 April.
Kip's net asset backing is ~123 cps (current price 114) and it has a ~5 cps divi coming up in June. Cheers, scamper.

[goingtobe]

Thanks for the response.

Enigma - why banking stocks - what makes these defensive stocks. Is it because they too "are immune to wars, oil prices, labour strikes, terrorism" as per Scampas suggestion.

I have checked these stocks (ANZ,WPT,KIP,HLG) compared against the performance of the NZSX50 over the last 5 years. Of the ones suggested, HLG has consistently performed over the last 5 years when compared against the NZSX50. The others have outperformed the NZSX50 on average over the last 5 years, but this was as a result of a couple of good years being enough to cover for a couple of bad years and still come out on top. I notice their good years were in 1999/00 and 2000/01. Was this another time when it was also wise to hold defensive stocks?

Goingtobe Dont forget to add in the very fat dividends into the equasion. The only bug bear is they are very sensitive to the $A TO $NZ exchange rate. They are very defensive because of the yield on dividends.

[Lizard]

Anyone else heard rumours that some major banks are experiencing a big increase in bad debts and mortgagee sales as interest rates rise? Don't see banks as defensive at this point in time myself.

[duncan macgregor]

LIZARD, To early for that as yet but it will come. When it does it creates new opportunities in different areas. I look on the market as leveling off, and dropping in the short term. It takes a period of time before higher interest rates takes a toll. If it all hits the fan, property is the best bet, buying from stressed sellers at the bottom. macdunk

[Dazza]

i agree, will be having some funds slowly being allocated for this predicted crash, man i cant wait

i tink... the next market crash will involve mmm resources IMO... in the 90s we had the dot com..

i tnk in the 00's we will have the resources crash..

[kittydashwood]

PFI is my favourite.

[clearasmud]

in the small caps TTP and PRG also poss GEN


All these have nta greater than sp