Finding infrastructure exposure

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Question asked 18/09/2021

Finding infrastructure exposure

Hi again,

I have been enjoying the commentary and thoughts about where the market goes next. Perhaps I’m a little conservative and have missed the uranium and lithium “ boom “ but I’m old enough to recall the original Poseidon boom /bust (and did make some nice $$$ ). Anyway …..I’m interested to find some infrastructure exposure including income and have been looking at DOW (Downer) and MGH (Maas) the latter as a newbie / growth. Any current thoughts on these or alternate infrastructure exposure.

Many thanks

Shane B

Answer

Hi Shane,

I’ve also witnessed some booms and busts including the Tech Wreck back in 2000 which saw over 80% wiped off the related stocks in a matter of months, in many cases the same high flyers of today. A number of the Australian infrastructure stocks are in favour at the moment as they tend to offer steady and reliable quality income e.g. Transurban (TCL) and Sydney Airports (SYD) – we still hold the former in our MM Income Portfolio although we wouldn’t be chasing at current levels.

Of the 2 you mentioned DOW is our preference with ideal entry around the $6.35 area – at current levels the shares are forecast to yield a solid 3.8%. Martin Crabb who I chatted to in a video a few weeks ago – Click here – has DOW as his top pick in the ASX 100. The other infrastructure play we mentioned recently (and are looking at for our income portfolio) is APA Group (APA).

chart

Downer EDI (DOW)

LAST UPDATED 17/09/2021 16:38

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