Quote Originally Posted by amalgam View Post
I am sure there are far better long term buys in the NZX or ASX than these Govt controlled Utilites

Meridian forecasts a net profit of 187.9 m [7.3 cents/share] to June 2014 & will distribute 144% of these profits. A gross yield of 13.4% [page 9 of the prospectus] assuming full imputation credits---contradicting a note on page 9 saying future divs will be only partially imputed.
For the year to June 2015 an annual div of 9.5% is planned [plus some imp credits]--a distribution of 140% of profits.

How sustainable is all this?

How will the company grow with outgoings like this?

And there is the strong possibility of a Labour/ Greens Govt dictating in the future

Not a great picture for a healthy investment which shows share growth & a sustainable return
So your alternative recommendation is ??

Always ready to look at the ones that are not on the global radar..