Question: Can you name five good yield stocks to buy in this downturn?
Answer (By Paul Rickard): If you are looking for reliable yield stocks (assuming also that franking is important – so I will exclude property trusts and other unfranked stocks), I think you should largely stick with S&P/ASX 20 type stocks, spread across a few sectors for diversification, in this market.
The five I would go for are:
- Commonwealth Bank
- Westpac
- Telstra
- Woolworths
- Woodside
Question 2: Can you please advise which companies will be able to take advantage of the new Sydney Airport at Badgerys Creek?
Answer 2 (By Paul Rickard): I think this is such a long-term project that it is almost impossible to predict with any confidence the benefits/costs to any company. That said, some of the winners/losers on paper would appear to be:
- Sydney Airport (SYD) – a loser due to potential competition.
- Qantas (QAN) and Virgin Airlines (VAH) – maybe winners because competition might lead to lower airport charges.
- Leightons (LEI) – it and other construction companies are possibly winners.
- Transurban Group (TCL) –possibly a winner if there are tollways to be built/operated.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.