Ive never had an issue with LTH. LTH are likely on a 5%+ dividend yield. I just cant fathom why people are going to buy today with a cost base above $160. The yield is around 2.88% at these prices. Its a literal low yielding non growth bank stock. I remember, and were only going back a few years, you could buy CBA with a dividend yield of around double the current yield. But something has happened and CBA has just gone bang and trades around 40% above its historical average, of which the sample size goes back to 1991.
Nothing wrong with questioning the price, rather than go along with what Mr Market says. It is expensive, it is overvalued, stocks can be overvalued. Retrospectively you can look at the dot com bubble and with hindsight realise some of those companies should never have gotten that high to begin with. I really do believe CBA will have that story too, where in months/years ahead e look back at the 'crazy' time CBA was trading at 28 times earnings.
CBA Price at posting:
$160.61 Sentiment: Sell Disclosure: Not Held
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