Does MM like Dalrymple Bay Infrastructure (DBI)?

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Question asked 25/06/2022

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

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.

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Dalrymple Bay Infrastructure (DBI)

LAST UPDATED 24/06/2022 15:59

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