Looking at buying Air New Zealand

I’m looking at buying Air New Zealand (AIZ) because of it’s yield at 10%. Do you think it’s sustainable and what do you think of the stock in general?

A: I am a little wary of airlines, and tend to avoid them.

The brokers are forecasting dividends in Air New Zealand (AIZ) of 21.5c in FY 16 and 21.2c in FY17, putting it on a yield of 9.6% and 9.5% in FY17. There is no doubt that Air New Zealand is a well-run airline – one of the better ones.

However, I prefer lower risk assets.


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