So, in this market, it's increasingly difficult to find high yielding stocks with some growth potential. Even that reliable dividend generator Metcash is back up to levels where it doesn't have much margin of safety.
The combination of commitment to dividend + massive drop in earnings + a new acquisition that should/could boost earnings in the future + no debt may push HSN stock down to levels where it is one of the best income producing investment on the ASX.
What sets it apart from other high yielders that are in a similarly precarious position regarding earnings is that it has no debt, which in my view limits the downside somewhat.
If anyone does know of any better income companies, let me know!
HSN Price at posting:
86.5¢ Sentiment: None Disclosure: Held
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