Cash or WDS ?

Cash has really come back into calculations in the past 12 months. When cash was paying 1% or 2% and various sectors in the sharemarket were flying and others performing quite solidly it was hard to argue with those that advocated you should always be ‘fully invested’

However now that your parked cash is earning 5% it’s not a bad defensive play…..particularly when so many stocks look shaky in terms of capital appreciation and only pay dividends of 3 or 4 %.

But then there’s WDS

I think the recent $1.25 dividend is very sustainable in the medium term and at say a $35 sp (looking quite likely with this market washout) 2 x $1.25 dividends p.a. gives you a return of over 7% and with franking the effective return is closer to 10%. Cash on the sidelines still can’t compete with that.

WDS a strong hold for me in this wobbly market (and creeping down towards top up levels)