My High Yield Stock Picks

Hi Mel,
This market correction has thrown a spotlight on high yield plays and I am glad you are focusing on this area. The key question will be sustainability of dividend yield and if you are satisfied that your picks meet this criterion then proceed to add to your portfolio. In my view this a normal market correction (not driven by recession) and it opens up great opportunity for investors to pile up high dividend stocks - you will be glad that you did.

Lotustpsll, best to go slow on Reits. US Federal Reserve impending
increase in interest rate may cut into the profit of the Reits and the dividend pay out.

Rock, sensible caution. Have pared down exposure to REIT. I guess a number of REITs have priced in the interest rate hike. But then again emotive selling can resume. Better to have spare cash to add positions later if necessary.

Would you guys add NORDIC GROUP to the list for yield-hungry investors? Yield is 6+% in FY16 when the recent acquisition of Austin Energy contributes its maiden year profits.

Nordic Group has risen 27% since my last post. from 18.5 to 23.5 cents. Plus dividend of 6.4% = 33.4%.
Next move could be : up to 26 cents + 6% dividend. total about 16%, just my wish.

It is opportune time to update my list of favoured high yield plays, given the changing scenario on US interest rate cycle. Defensive and sustainable yields are essential for investors looking for income.
Manulife Reit ^
Frasers L & I
Viva Industrial
Croesus Retail
Accordia Golf
RHT Health
Valuetronics ^
CEI Manufacturing
^ beneficiary of rising USD

Croesus and Accordia are included as “safe haven” play on Yen. Viva has a big exposure to “Business Park” sector. Healthcare play, RHT, is a must for any portfolio. CEI’s dividend yield is mind blowing and should be sustainable. For AUD exposure, look into Frasers L & I (Aud/Sgd trend has bottomed).

I have long position on the above.

I had Nordic and made a mistake. Closely my position too closely.