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Safest dividend play at the moment?

Discussion in 'Shares' started by try anything once, 13th Nov, 2008.

  1. try anything once

    try anything once Well-Known Member

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    I was thinking about banking shares dividend streams and wondering what could impact their ability to pay the historical dividends per share? Obviously loans in default can hit earnings, but as someone pointed out earlier, they seem to be doing a good job of widening the gap between cost of funds (deposit rates) and earnings on funds (loan rates).

    What else could impact their ability to sustain earnings/dividends?

    What other companies out there do people know about which you consider to be a safe bet for sustainable dividend payout?
     
  2. Chris C

    Chris C Well-Known Member

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    Potentially healthcare companies?

    People still get sick, and people are still willing to pay not to die.

    Though the sector isn't a strong sector for dividend payments, though I think it will beat the market considerably for the next 6 - 12 months. Plus I think companies like Cohlear will benefit greatly from the drop in the $A of late plus has long term growth potential with the emergence of BRIC economies such that their citizens can afford to further invest in their health.
     
  3. C3PO

    C3PO Well-Known Member

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    Gambling - TABCORP might be a good one. People gamble more in recessions.
     
  4. Billv

    Billv Getting there

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    I'd say pharmaceuticals, heavy engineering & construction firms, and grocerie chains are unlikely to be impacted from a recession
     
  5. Chris C

    Chris C Well-Known Member

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    Is there a reason you are looking past STW? Looks like the best way to diversify across the sectors as well as earn a nice dividend on the side (currently sitting at 10.3%)
     
  6. Billv

    Billv Getting there

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    Chris

    I am not looking past it, it was a general comment I made on what I prefer in this market.
    Under difference circumstances the banking sector would also be high up on my list.

    The resources sector will also recover, it's just a matter of time and the dividends of large companies wouldn't be hard to maintain.

    cheers
     
  7. crc_error

    crc_error The Rule of 72

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    maybe, but buying the stock is more of a gamble..
     

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