Hot on the heels of my recent stories about Market Beating Dividend Stocks, analysts at Bank of America-Merrill Lynch have released a sector update on Australian Infrastructure stocks, and the similarities between my own research and theirs is too much to leave unmentioned. The team at BA-ML has picked three candidates that each should generate a return of some 15% annually from a combination of high dividends and relatively steady growth over the years (plural) ahead.
This seems like a brave call given this type of stock tends not to perform very well when interest rates are rising, and don't we all know the RBA is not finished yet? Also, with more and more market strategists projecting 20% returns in the year ahead from global growth leveraged cyclicals and resources stocks, who'd be genuinely interested in defensive exposure with 15% tops in projected return? In other words... the ideal environment for astute, patient investors to pick the next Market Beating Dividend Payer, while Mr Market is looking in the direction of China and the US dollar.
Source: MSN
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