Bell Direct provides news items from the Dow Jones news service. It currently has an item that Barron's has suggested Asian markets have rallied too much and could be in for a pause (my summary). Barron's identifies six high yielding stocks it suggests you should include in your portfolio. One is GEM, the other five are not listed on the ASX.
The article is long. I am happy to post on Hotcopper if anyone wants to read it.
The following is what Barron's says about GEM:
G8 Education
Australia is fertile ground for dividend hunters, with stocks in the Land Down Under yielding about 4% on average. Banks and insurance companies are among the biggest payers, but these stocks look pricey at about 16 times earnings.
Investors should instead do their homework on Gold Coast-based G8 Education ( GEM.AU), which yields about 6.7% and trades at a historically low 13 times forward earnings. The company operates about 500 education centers across the country.
A caveat that comes with this stock is volatility, however. In August the shares plunged up to 20% in a single trading day when G8 dropped a lousy set of quarterly numbers. Since then the company's shaken up senior management while acquisitions of more centers could help earnings pick up some more momentum in 2017.
GEM Price at posting:
$3.80 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)