Analysis of WHC, BHP, and PPT please

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Question asked 03/02/2024

Analysis of WHC, BHP, and PPT please

Hi Team, I am over 80 years of age and must take at least 7% out of my Super each year. As no Super fund pays 7% in dividends , my Super will get smaller every year. Therefore, I must try to find very high dividend stocks that are reliable payers to try to hold on to as much of my super as I can for as long as I can. I must also look at selling any stocks in my Super fund that look like they have peaked or will be cutting their dividends. I am concerned about WHC, PPT, and BHP. These are in my Super fund. I would like your analysis of these 3 stocks for dividends ,growth and reliability. I would also like to hear any ideas about companies that might have long term high dividends. I bet there are MANY MM subscribers that are in the same boat as I am. Oh, by the way, like so many other investors, I already have TOO MANY bank shares so I am NOT interested in getting more of them. I bet there are MANY MM subscribers who are in that boat , too. Ancient Paul

Answer

Hi Paul,

Remember 80 is the new 60! At MM we cannot give Personal Advice hence our assessment of these 3 stocks is only with consideration to our respective portfolios, noting that our income portfolio balances more volatile equities with debt securities such as Hybrids, that provide high levels of consistent income. James and his team at Shaw can provide advice that is specific to you i.e. personal advice if that is of interest, drop him an email: [email protected].

BHP – This heavyweight diversified miner will rely on iron ore and to a lesser extent copper & coal to sustain its yield. Its forecast to yield ~5% over the coming 12-months but moving forward this will be largely driven by Chinese growth. At this stage MM is happy to hold BHP in our Active Growth Portfolio. and Active Income Portfolio.
WHC – Its dividend will be driven by the underlying coal price, which in turn will be driven by the rate the world moves to clean energy. Over the coming 12-months its forecast to pay ~10% which is likely to decline over time as demand falls for fossil fuels but for now MM is happy to hold WHC in our Active Growth Portfolio.
PPT – as we said in the week MM is neutral towards PPT around the $26 area, and we flagged some concerns around their leverage which could put some pressure on their dividend payouts in the future.

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BHP Group Ltd (BHP)

LAST UPDATED 02/02/2024 13:43

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