Navitas Limited (NVT) will go ex dividend on 9/2/2012. The current dividend payment is 9.4 cents and it is 100% franked. The record date is 15/2/2012 and the dividend will be paid on 29/2/2012. Based on the full year payment the dividend yield is 7.1%.
*Current Yield: 3.1% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.
Milton Corporation (MLT) will go ex dividend on 9/2/2012. The current dividend payment is 38 cents and it is 100% franked. The record date is 15/2/2012 and the dividend will be paid on 29/2/2012. Based on the full year payment the dividend yield is 4.9%.
*Current Yield: 2.4% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.
* US stock markets surged higher overnight, though trading volumes were light.
* European stock markets ended with strong gains, boosted by promising news on the German economy and sharply lower borrowing costs for Spain.
* Asian stock markets bounced back yesterday, despite fears of potential destabilistation in the Korean Penninsular.
* Commodities prices traded higher, as Gold prices moved higher to around $US1,615 and crude-oil closed around $US97.
The SPI Futures is trading above the key pivot level of 4180, ending up 1.8% (or 74 points) at 4,113. The key levels for our index today are 4080 to 4180.
Aussie traders are expected to look for bargains today, after positive leads from the US and European markets, as traders’ fears over the eurozone debt crisis eased and US economic data boosted sentiment. Note that in 7 out of 10 years, on average the markets rise around 4.9% in the last 2 weeks of December and with the recent sell-off we are set up for some recovery in the next few trading days. Remember options expiry on Thursday.
See below for ASX listed companies in the news today.
US stock markets surged higher overnight, though trading volumes were light.
The Dow Jones Index jumped above 12,000 and is now up for the month and up 4.5% this year. In the broader markets the S&P 500 and tech-heavy Nasdaq rose 3%, and the gains were led by the energy, financial and materials sectors.
The relief rally was sparked by a better-than-expected report on the housing sector as US housing starts surged 9.3% in November, rising to the highest level in 19 months and construction permits also rose.
All ten company groups that make up the S&P index traded higher with Materials up 3.9%, Energy up 4.1%, Financials up 3.8%, Industrials up 3.4%, Technology up 2.8%, and Consumer Staples were up 2.8%.
The Dow Jones closed up 2.9% (or 337 points) at 12,104, the S&P 500 index closed up 3.0% (or 36 points) at 1,241, the Nasdaq ended up 81% (or 3.2 points) at 2,603 and the smaller cap Russell 2000 was up 4.2%.
European stock markets ended with strong gains overnight, boosted by promising news on the German economy and sharply lower borrowing costs for Spain. The Stoxx Europe 600 index closed 2% higher.
Across the region gains were lead by the financials, but growth sensitive stocks also traded higher. The better-than-expected economic data out of Germany came from the Ifo Institute’s business confidence index, which rose in December to 107.2 (up from 106.6) exceeding analysts’ expectations. Spain sold EUR5.64 billion of three and six month Treasury bills, which exceeded the target of EUR4.5 billion. This is on the back of another bond auction last week where Spain sold almost double the amount of longer-term bonds than it had targeted. The average yields fell sharply to 5.05% from 5.15% at a previous auctions.
In London the FTSE 100 index closed up 1.0% (or 55 points) at 5,419, the German DAX was up 3.1% (or 176 points) at 5,847 while in France the CAC was up 2.7% (or 81 points) at 3,056. Spain was up 2.4% and Italy ended up 2.9%.
Asian stock markets bounced back yesterday, despite fears of potential destabilistation in the Korean Peninsular. South Korean and Japanese shares advanced, recovering some of their previous session losses, as fears eased despite the North Korean leader Kim Jong Il’s death. In Hong Kong the Hang Seng Index was flat, while in China the market hung close to 3-year lows.
In China the SSE Composite was down -0.1% (or -2 points) at 2,216, while in Hong Kong the Hang Seng Index was up -0.1% (or 10 points) at 18,080 and in Japan the Nikkei 225 Index was up 0.5% (or 40 points) at 8,336. The South Korean KOSPI was up 0.9% for the session, while the Indian market was down -1.3%.
The Dollar Index was lower at 79.84 on a higher Euro, while the Australian Dollar last traded lower at 1.007. Commodities prices traded higher.
For the session the benchmark crude NYMEX for December delivery was up 3.7% (or $US3.47) to settle at $US97.52. Copper prices are seeking a support level as Copper for December delivery was up 1.9% (or 6.2 cents) at $US3.3640. December gold was up 1.3% (or $U21.20) at $US1,615.
BBG – Billabong shares slumped a further 11 percent, after plunging over 40% in the previous session after a profit downgrade.
COH – Cochlear the hearing implant maker says about 1.9 percent of registered implants globally of its Nucleus C1500 series devices have failed, and they know the cause of the problem.
ELD – Elders says profits in the first two months of its fiscal year are inline with their improvement plans.
GCL – Gloucester Coal is in a trading halt ahead of an announcement about a potential takeover.
IAG – Insurance Australia Group’s Malaysian associate plans to become that country’s largest motor insurer through a takeover.
IPL – Incitec Pivot says it has started the financial year strongly with the explosives and fertiliser maker’s sales volumes and prices above those of last year.
LEI – Leighton Holdings’ Asian business has been awarded nearly $130 million in new contracts for work in Hong Kong.
MAH – Macmahon Holdings the engineering firm has upgraded its full year profit forecast by at least $10 million because of additional work.
QAN – Qantas and its engineers have ended their dispute with the Australian Licenced Aircraft Engineers Association saying it has locked in job security for its members.
WOW – Woolworths hotel group has purchased 31 hotels in NSW from the Laundy, Waugh and De Angelis Groups.
WPL – Woodside Petroleum denies it is having doubts about building a gas processing plant in the Western Australia north.
None
ASX – to open higher
US & UK/Europe – higher
Commodities Stock Index up 4.1%
Gold Stocks Index up 3.4%
Oil Stocks Index up 3.7%
US ADRs – Broadly Higher
BHP up 4.7% & RIO up 5.9%; AWC up 3.9%
ANZ up 3.4% & NAB up 3.4%
NEM up 2.6%, JHX up 7.3%, NWS up 2.9%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
Investors have generally had a tough year in 2011, so to finish up our Analyst’s Eye series for the year we thought it may be worth noting what stocks you could consider for 2012.
At this stage the prospects for 2012 remain uncertain. We know that the eurozone will still be troubled by mounting sovereign debt and slowing global growth prospects.
One way to trade into the New Year is to take a more domestic focus trading in stocks with consistent fundamentals that reward shareholders through a strong dividend stream.
We have done a quick review using The Bourse software to search the S&P/ASX 200 for stocks that meet the above criteria and summarised them in the chart below. Note we sorted these stocks by year-to-date performance.
(Click to enlarge)
There are a number of ways to utilise this information for your investing in 2012, including:
• Choose the stocks that have performed the best in terms of YTD return and Yield, such as NIB Holdings, Telstra Corporation and Metcash. This method assumes that these stocks will continue to outperform into 2012.
• Choose the stocks that offer the best in terms of Dividend Yield, such as NIB Holdings, Telstra Corporation, Tatts Group, Myer Holdings and David Jones and Perpetual.
• Choose the stocks that have performed the best in terms of Return on Equity and Yield, such as Telstra Corporation, AMP, Myer Holdings, David Jones and Perpetual. Note this list includes a number of retailers which have the added risk that if the retail environment continues to deteriorate the size of the dividends may be reduced.
• Choose stocks on a contrarian basis, that is those stocks that have been heavily sold off in the past year and trading on single digit PE, on the hope of a recovery into 2012, such as Westpac Bank, ANZ Bank, Myer Holdings and David Jones. Note this is a similar methodology to the “Dogs of the Dow” methodology used by traders in the United States, to select high yielding, underperforming stocks.
So decide on your selection criteria and add some of these stocks to your Christmas hamper. Additionally keep a watchlist of these stocks, so that you can start accumulating if there is another sell-off in the first quarter of the New Year.
While trading in high yielding stocks is not guaranteed to deliver strong returns to investors or traders, dividends do offer a margin of safety, which can in turn boost any capital return on the company’s shares. Dividends also offer Super Funds the additional benefit of franking credits which can boost the portfolio’s annual performance.
Wishing you all a Merry Christmas from the Research Team, and we trust that Santa Claus delivers exactly what you want for Christmas. We will return in the New Year.
Michael Hevern
Investment Adviser
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
G.U.D. Holdings (GUD) will go ex dividend on 24/8/2011. The current dividend payment is 35 cents and it is 100% franked. The record date is 30/8/2011 and the dividend will be paid on 14/9/2011. Based on the full year payment the dividend yield is 8.2%.
*Current Yield: 4.5% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/8/2011. Current yield is based on the current dividend payment only.
Mount Gibson Iron (MGX) will go ex dividend on 22/8/2011. The current dividend payment is 4 cents and it is 100% franked. The record date is 26/8/2011 and the dividend will be paid on 9/9/2011. Based on the full year payment the dividend yield is 2.5%.
*Current Yield: 2.5% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/8/2011. Current yield is based on the current dividend payment only.
Korvest Ltd (KOV) will go ex dividend on 19/8/2011. The current dividend payment is 15 cents and it is 100% franked. The record date is 25/8/2011 and the dividend will be paid on 8/9/2011. Based on the full year payment the dividend yield is 6.5%.
*Current Yield: 3.8% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/8/2011. Current yield is based on the current dividend payment only.
Tamawood Limited (TWD) will go ex dividend on 10/5/2011. The current dividend payment is 8 cents and it is 100% franked. The record date is 16/5/2011 and the dividend will be paid on 3/6/2011. Based on the full year payment the dividend yield is 7.2%.
*Current Yield: 2.8% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/4/2011. Current yield is based on the current dividend payment only.
Astivita Renewables (AIR) will go ex dividend on 10/5/2011. The current dividend payment is 4 cents and it is 100% franked. The record date is 16/5/2011 and the dividend will be paid on 3/6/2011. Based on the full year payment the dividend yield is 3.5%.
*Current Yield: 3.5% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/4/2011. Current yield is based on the current dividend payment only.
Bank of Queensland (BOQ) will go ex dividend on 3/5/2011. The current dividend payment is 26 cents and it is 100% franked. The record date is 9/5/2011 and the dividend will be paid on 25/5/2011. Based on the full year payment the dividend yield is 5.3%.
*Current Yield: 2.6% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/4/2011. Current yield is based on the current dividend payment only.
