QUOTE(prince_mk @ Feb 20 2017, 06:03 PM)
3 Income stocks for Retirement Portfolio
Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and Retail Food Group Limited (ASX: RFG) will make good income stocks, bought at the right price.
I had a quick look at RFG, comments :-
1) yes, growing dpu since Mar 2007. I must say the chart
is really impressive.
2) but : the grossed-up dpu amount only yields 6.43%, with the normal yield at only 4.50% at a price of $6.11. Even if the dpu keeps growing through the years, it will still take sometime to reach 7.50% normal yield, IF EVERYTHING PROGRESSES WELL CONTINUOUSLY.
...bUT if something negative happens, causing the dpu to be reduced, then the yield will drop down from 4.50% (which is already low enough). Any further drops from 4.50% will make it 'unworthy' as a yield/income stock. Of course, the price will also drop when the dpu reduces, then we might suffer capital loss too in this process if the yield doesn't reduce too much.
Either way,...
,... this stock looks risky towards the ROI for my bullets,... don't know if I'm clear in my explanations,...