MCY Mercury NZ ( MRP Mighty River Power)

[fish]

Well done Bobdn.
Time in the market,selling at the right time for you and choosing the right stocks is the key to success.
May you keep enjoying the dividends and very low risk

[couta1]

The power companies are great dividend payers but are all currently either fully or overpriced so I wouldn't buy any of them ATM.

[fish]

The power companies are great dividend payers but are all currently either fully or overpriced so I wouldn't buy any of them ATM.

Nor would I..
They are priced at market value and as such for a young investor with a long-term outlook they should be considered as part of a portfolio-In this situation it looks to me to be a good place to invest.

[Jonboyz]

MCY and MEL stock prices were running neck and neck for a while, now MCY is at a greater discount compared to forward P/E and a better dividend. Any thoughts on which is the better investment atm?

[Beagle]

Direct broking is showing net yield of MEL at 5.18% and MCY at 4.21%. The only reason to own the gentailiers is safe yield in my opinion so that explains why I hold MEL in preference to MCY. Hope that helps.

[bull....]

Direct broking is showing net yield of MEL at 5.18% and MCY at 4.21%. The only reason to own the gentailiers is safe yield in my opinion so that explains why I hold MEL in preference to MCY. Hope that helps.

compare mel 5.18% , mcy 4.21% and gne 8.6% gross and on that basis gne looks way to cheap

[blackcap]

compare mel 5.18% , mcy 4.21% and gne 8.6% gross and on that basis gne looks way to cheap

Wow GNE needs to be at about $4.50 on that basis. Might top up bigly my GNE shares today. This is seriously undervalued on a yeild basis.

[bull....]

Wow GNE needs to be at about $4.50 on that basis. Might top up bigly my GNE shares today. This is seriously undervalued on a yeild basis.

also based on the historical difference in stock prices between mel, mcy and gne, gne has not kept pace lately and is at a discount to this should be closer to 3 by my assumptions

[huxley]

also based on the historical difference in stock prices between mel, mcy and gne, gne has not kept pace lately and is at a discount to this should be closer to 3 by my assumptions

Haha, sure but you’re getting exposure to some pretty different energy assets with GNE. Oil and gas fields plus the thermal generators have a much shorter life cycle than those hydro assets which dominate MEL and MCY. Therefore it’s not surprising the market assigns a different market price here as the outlook for their cashflows are quite varied

[Beagle]

compare mel 5.18% , mcy 4.21% and gne 8.6% gross and on that basis gne looks way to cheap

mcy and mel yields were straight off direct broking website and are net yields and I have not grossed up for imputation credits.
8.6% gross yield for GNE has been grossed up and is based on GNE's own calculations based on average price last year of $2.61.

I have crunched all the numbers on current share price and taking into account the degree of imputation credits below :- (this post to be continued)
MCY $3.60 Final divvy FY18 and Interim divvy FY19 total 15.3 cps 100% imputed = 21.25 cps gross = gross yield 5.9%
MEL $3.71 Final divvy FY18 incl special and Interim divvy FY19 incl special, ordinary divvies 86% imputed, special's not, gross divvy total 24.1 6 cps = gross yield 6.5%
GNE $ 2.79 Final divvy FY18 and interim divvy FY19 total 17.05 cps 80% imputed = gross 21.97 cps = gross yield of 7.9%

MEL divvy is supplemented with capital management program which is reviewed from time to time.
GNE earnings and their ability to pay these divvies is supplemented by Kupe and gas fields that from memory make up somewhere around one quarter of EBITDAF and are in very gradual decline
FWIW I hold GNE MEL and Contact.