Long-Term Stock Suggestions for Increased Tourism

In light of bullish projections for inbound tourism to Australia, do you have any stock suggestions for a long term income investor (via SMSF in pension mode)?

 

A: Thanks for the question, which is a really good one.

The obvious stock is Sydney Airport, but it has done really well and is now very expensive. It has a forecast distribution yield of just 4.7% in FY 17, rising to 5.0% in FY18. Not tax advantaged.

Personally, I don’t think this is very attractive – plus, there is the long term risk of Badgerys Creek.

It is a good topic – we might see if Tony Featherstone can do a report on this topic.

Regards


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