A month ago, Charlie Aitken wrote about the importance of biting the bullet and buying in gloom (he reiterates that strategy in his article today too). It was the beginning of the reporting season and many companies that failed to deliver on their forecast numbers were getting smashed. But those that surprised on the upside AND increased dividends were favoured by the market.
So how have Charlie’s four companies gone over the past months? Let’s take a look and let’s not forget that during August the S&P/ASX 200 was down 8.6%.
Rio Tinto (RIO)
[1]Fairfax Media (FXJ)
[2]Greencross (GXL)
[3]JB Hi-Fi (JBH)
[4]JB Hi-Fi is also a favourite of Tony Featherstone’s. Read why he thinks it has potential in 2 strategies to win in the retail sector today [6].
Telstra didn’t have such a great month in August but don’t forget it’s yielding a very health 5.5% yield on FY16 forecast earnings.
Telstra (TLS)
[7]
Speaking of dividends, the dividend play isn’t over yet. All the four major banks [8] are yielding over 5.5% on FY16 forecast earnings and Paul Rickard’s new favourite dividend stock [9] – BHP – is yielding 7% fully-franked.
But before you get too caught up in the dividend daze, just make sure you’re pretty confident the company will keep delivering and has the funds to back up these payments, without delving into borrowings.
*All charts sourced at Yahoo!7 Finance, 10 September 2015
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