| Dear Reader, Cash rates are at their highest in a decade. That’s NOW, though. What about in two years’ time? They could well be much lower again. And if that’s the case, growth assets are the place to look. But that doesn’t mean you need to abandon the search for income. There is an income/growth sweet spot developing in the market right now. It’s giving you the opportunity for a juicy dividend yield AND growth. While the ASX 200 might be flat over the past two years, there are plenty of stocks that are down significantly from their highs. In many cases, these stocks offer prospective dividend yields well above the cash rate AND trade significantly below a reasonable estimate of intrinsic value. The way I see it, you can get a decent yield while waiting for the tightening cycle to play out. Then you’re in a good position to benefit from the eventual tailwind of a post-recession/slowdown easing cycle. I’ve run the ruler over dozens of potentials. And drilled down to just a tight six. Click here to learn about my Royal Dividend portfolio. Regards, Greg Canavan,
Editorial Director, Fat Tail Investment Research | 