Ampol vs Viva
Hi James, why do you prefer Ampol to Viva Energy? I thought Viva has a much bigger dividend, but am concerned with its debt level.
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Answer
Hi Jacky,
Both Ampol (ALD) and Viva (VEA) have enjoyed similar paths over the past 12 months, they are likely to pay a similar dividend around 3.20% over the coming 12 months and are essentially enjoying very similar dynamics, hence the correlation in their share prices. ALD does run slightly higher net debt however they’re a bigger business – i.e. ALD generates ~$31bn in revenue with net debt expected to be $2.5bn this year while VEA generates ~$21bn and carries net debt of ~$1.5bn, with both enjoying similar sort of profit margins. These are two high quality, defensive stocks.
