Duet

What is your view on Duet – should I keep these shares?

A: Thanks for the question.

Duet has maintained its guidance to pay a dividend this financial year of 18c per share. While the brokers think the stock is fully priced (consensus target price of $2.28, sentiment ranking of -0.1, where -1.0 is most negative and +1.0 is most positive), they don’t seem to be going anywhere. I think dividend (and the yield of almost 8%) will provide strong support for the share price, so I wouldn’t be in a hurry to sell.

That said, there is probably not a lot of price upside, and in a rally, Duet will lag – so if you wanted the cash to invest in something with better growth prospects, then this stock is an obvious candidate.

Hope this helps.


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