ANZ.NZX - Anyone holding?

[Snoopy]

I find greater safety buying shares that have eps growth.They have the capacity to keep increasing their dividends.

To be fair, ANZ has a very good record of long term 'eps' growth. So good, that I took my eye off the ball and just let ANZ management 'do their thing'. The problem for ANZ shareholders now is that ANZ eps growth has stalled. Yet the recapitalisation that took place in 2015 and partially contributed to eps stalling is not altogether a bad thing.

The recapitalisation trade off for shareholders is that ANZ is now 'better set up' for a market shock, like a sudden decline in house prices. As I see it, the risk return trade off is now different.

The question going forwards is, will eps:

1/ plateau at this level?
2/ resume a slower upwards climb?
3/ undergo a slow decline as new disruptive players (like Apple and Heartland) muscle in on what was once a cosy high barriers to entry market?

My best guess now is that the answer will be 1/.

If I am right, this means that the gains in ANZ share price of recent years will likely not continue. Does this matter? I would argue that if the dividend yield is still good (and I think it is), you should moderate any growth expectations and just keep harvesting those dividends.

SNOOPY

[percy]

It would appear brokers' analysts agree with you on 1/.

[Bobdn]

Happy days are here again.First-quarter profits rise to $2B. Excluding one off items, earnings are up 20 per cent year on year.

[kiwichick]

And yet the share price dropped a bit. Go figure.

[Bobdn]

Wait for the ASX to open in a few minutes

[kiwichick]

Yeah I've noticed that ANZ and WBC on the NZX often drop when the market opens and then increase when the ASX opens (if the ASX-listed shares increase).

[Nasi Goreng]

I think its a liquidity thing. I like to hold the ASX listed stock because even though its initially more expensive because of transfer from NZD to AUD, if for any reason I need to get out in a hurry, there will be buy orders.

Today after a quarterly results announcement, NZX has traded 30,000 shares and the spread is 18c. ASX after 20 minutes has traded 1,461,000 and the spread is 1c.

[kiwichick]

I have to agree with you. I think in future I'll gravitate towards the ASX for dual-listed companies. Provided you're not switching back and forth between currencies, I doubt that initial exchange expense will matter much long term.

[macduffy]

I have to agree with you. I think in future I'll gravitate towards the ASX for dual-listed companies. Provided you're not switching back and forth between currencies, I doubt that initial exchange expense will matter much long term.

Agree, for dual-listed Australian companies. But for the dual-listed NZ companies such as AIA, FBU, EBO, FPH etc, the NZX will generally have the deeper, more actively traded market.

[Aaron]

I have to agree with you. I think in future I'll gravitate towards the ASX for dual-listed companies. Provided you're not switching back and forth between currencies, I doubt that initial exchange expense will matter much long term.

Wouldn't you miss out on some imputation credits on dividends for the likes of ANZ and Westpac?