Thoughts on Dalrymple Bay (DBI) for yield
WOULD LIKE YOUR THOUGHTS ON DALRYMPLE BAY AS A DIVIDEND PLAY. THEY SEEM STABLE AND NOT REALLY AFFECTED BY THE COAL PRICE. REGARDS JOHN
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Hi John,
We’ve previously held this in our Income Portfolio (a few years ago) and sold out too early. We like it, although it’s structure is a little complicated from a tax perspective. Approx. 5.3% yield, stable earnings, critical infrastructure etc – all looks okay. Regarding the influence of the coal price, they operate with take or pay contracts meaning they get paid irrespective, hence their stability.
- We do have a preference for APA Group right now given relative pricing, hence, we own APA in the Income Portfolio.
