Radar’s Portfolio Manager says, “Without dividends there is no point to investing; without dividends it’s speculation”.
Subscribers will know that Under the Radar does not shy away from recommending Australian shares that won’t be paying dividends for a long time – speculative stocks, if you like. But we do make sure that the vast majority of small caps we tip are paying dividends, or will be doing so in the near future.
The recent sell off has provided investors an opportunity to grab good small listed companies on the cheap. These companies will deliver 5 per cent plus in dividend yield, plus the ability to grow dividends that patently does not exist in their bigger cousins.
Here’s what’s install for you in Under the Radar: Small Caps' latest issue:
• A small cap listed on the ASX whose earnings are increasing at more than 20 per cent a year and is providing investors with a 4 per cent fully franked dividend, which will grow.
• Another micro cap that’s trading on a PE of 5 times, which means the market thinks it’s going to fall over, yet it’s paying dividends and it is reducing its debt!
• Our third tip is a producer of a food that is experiencing double-digit growth around the world, is forecast to grow its dividend and it’s a takeover prospect to boot. Buy and watch its share price and dividends grow.
• We interview investment committee member Karl Siegling of Cadence Capital. He is running Australia’s best performing listed investment company (ASX code CDM) over 1, 3 and 5 years.
• Our Portfolio Manager delivers his six month update.