Insurance Australia Group (IAG) - Dividend Yield (6.86%)
income stocksWe know that IAG offers great market power as part of an Australian insurance duopoly inside an underinsured market. It is leveraged with an eventual east coast recovery having a positive Gross Written Premium (GWP) outlook and near double digit earning per Share growth in the medium term. The present business structure is really attractive by which they may have de risked by de - emphasizing UK in favor of high growth Asia.
dividendsSpark Infrastructure Group (SKI) - Dividend Yield (6.47%)
Spark Infrastructure Group is an Australia-based company is involved in the investment in electricity distribution businesses in South and Victoria Australia. Spark is a solid company with investments in Australian electricity distribution networks generating highly secure income within transparent regulatory regime. Capital expenditure on upgrading and expanding networks adds to the regulated asset base (RAB) and definately will drive revenue higher eventually.
Southern Cross Media (SXL) - Dividend Yield (7.06%)
We highlight the appeal of the 7% dividend yield. We love SXL because of the resilient nature from the radio in conjunction with our view that SXL has been oversold depending on the perceived risks at today FM. Within the regional areas there is strong result with 6% Earnings before Income Depreciation, Amortization and Tax (EBITDA) growth to $65m on 2% revenue growth to $195m.
Seven West Media (SWM) - Dividend Yield (6.12%)
Seven’s television network has delivered its fourteenth consecutive 50 % of ratings leadership, attracting 40% of viewers. We expect this performance to go on into the second half. The organization expects low to mid-single digit growth for your remainder in the fiscal year. We view this softness in expenditure indicating industry weakness as advertisers put more resources to the online sources. In spite of this pessimistic outlook we expect the margins to stay stable since the company shifts from more costly U.S content to a greater portion of higher margin content produced in house which can be currently 50% in the total content pool. We know seven West Media can extract higher margins from the local content while retaining a highly engaged and consolidated audience.
STW Communications (SGN) - Dividend Yield (6.28%)
STW Communications Group is Australia’s largest local marketing communications group. SGN also has operations based in Nz and a small but emerging footprint in Southeast Asia. SGN features a strong momentum heading into 2014. NZ and the offshore investing arenas are delivering solid growth. Management described the brand new business pipeline as encouraging. Management expect FY14 NPAT to cultivate mid-single digits. This really is before any new acquisitions.
Decmil Group (DCG) - Dividend Yield (5.92%)
Decmil Group provides engineering and construction services for the Australian energy and Resources sectors. The organization focuses on accommodation facilities and villages along with civil works. The organization is increasingly diversified without any longer depends on winning very large contracts. The 2 Manus Island contracts using the Department of Border and Immigration Protection adds material diversification.
Note - These dividend yields are current in the date of publishing this post (06/04/2014)
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Kalkine provides general advice on securities. Kalkine does not provide advice that takes into account your, or anybody else’s investment objectives, financial situation or needs. We strongly suggest that you should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. Employees and/or associates of Kalkine Pty Ltd may hold one or more of the stocks reviewed on this website. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
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