Top Three Income Portfolio Buys Now
Which of your current Active Income Portfolio stocks would you buy right now from scratch and why?
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Answer
Hi Roger,
We note you’ve asked for stocks which narrows down the choice in the MM Income Portfolio which only holds 15 stocks of which only 13 are regarded as Active, or buys, at this moment of time. Picking 3 is not easy as we like all the positions held today or they would no longer be marked as Active for the portfolio but going out on a limb we’ve plumbed for the following into Christmas, with one eye on dividends, if we were thinking for 2-3 years the selection would alter:
- ANZ Group (ANZ) – after coming off the boil from recent lofty valuations we see the banks seeing some “Buy Dip” activity ahead of their November dividends – ANZ is forecast to pay a 94c fully franked dividend in November putting the stock on a forecast 5.4% yield over the next 12 months.
- APA Group (APA) – the utility reported well in August (Here) and while the market looks for two RBA rate cuts over the coming year its 6.5% part-franked yield should remain supportive, starting with Decembers estimated 27.5c dividend due in December.
- New Hope Ltd (NHC) – perhaps the surprise pick here for some with the coal miners FY25 results due on the 16th of this month but with a 22c fully franked divided expected in October, putting the stock on a 9.2% yield over the coming year there’s plenty of “fat in the sandwich” from an income perspective.
