Does MM like Dalrymple Bay Infrastructure (DBI)?
Hi James, Any recent thoughts on DBI ? Very high yield, but no one ever mentions it or recommends it. One is happy to keep coal miners, but not the guys who ship it ? Thanks Filip
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Answer
Hi Filip,
A very valid question, DBI is a $980mn infrastructure business which offers port infrastructure and services for produces & consumers of coal. The stocks not overly expensive and as you say currently is forecast to pay an attractive 9.1% yield. They have attractive take or pay contracts in place making revenue very stable, while they are also planning a port expansion.
We think this is a buy for income below $2 but concede it will screen poorly to many ESG funds.
