Wholesale bond rates have fallen and with the economy fairly weak speculation is on that the RBNZ is looking at an interest rate cut from the already very low level of 1.75%.
The companies are doing well and Contact listed its dividend policy yesterday from 80-90% of free cash flow, (mid point 85%) to 100% of FCF.
In a very uncertain world the stability, highly defensive properties and yield of the power companies looks like a safe harbour and with gross yields of up to 7.5% inclusive of partial imputation credits I am sorry Couta1 but I think the rising share prices are a perfectly logical response to changing market and economic circumstances.
Disc: I have recently added to my investment in MEL and opened up a modest position in CEN yesterday. The gentailiers offer a safe harbour in a very uncertain world.
what about gne not own anymore? its paying the highest yield of all gentailers
Originally Posted by Beagle
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