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Junior Member
Defensive NZ Stocks
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.
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Member
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.
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Junior Member
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?
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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.
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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.
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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
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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..
Oil - NZO
REE - ARU
Copper - EQN/OXR/TMR
Iron- AGO/ADY/UMC
Nickel-WSA
PGM/Gold - PLA/VRE
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Member
http://www.kittydashwood.com - advice from a small black and white house cat, who favours a gap up on a red doji.
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in the small caps TTP and PRG also poss GEN
All these have nta greater than sp
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