Income Portfolio buys
Recommendation
We've found it hard to find much value over the past year and, while this week's market turmoil has improved things a little, few stocks have actually crossed into buying territory. One that has, though, is Scentre Group, which we eyed up and then narrowly missed back in October. Patience comes to those who wait, though, and the stock this week dropped below our $4 Buy price, earning itself an upgrade.
We've taken our own advice and added a 3.5% weighting to our Equity Income Portfolio at $3.97. With a forward distribution yield of about 5.5% (albeit minimally franked), the stock boosts the portfolio's income generation – up to a yield of about 4.1% – but also offers prospects for growth at least in line with inflation.
Given the heavy weighting of returns towards income rather than growth, we'll be looking for a cheaper price before we buy it for the Equity Growth Portfolio.
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