The dividend play in the telecommunications sector is still TLS;...

The dividend play in the telecommunications sector is still TLS; it has a high yield and trades at a low earnings multiple compared to its (growth-orientated) peers. Furthermore, Mum and Dad-style SMSFs can exploit franking credits, and the current economic environment favours defensives such as TLS.

Having said that, earnings certainty and growth carries a premium. This can also be exploited in superannuation environments (eg pension phase, deferring capital gains), and others have mentioned the efficiency of disproportionate growth rates.

Although it is possible to be punished on forecast earnings (eg STO vs WPL), I believe the payout ratio for VOC (10%) is not inappropriate. Superficially appalling, but actually positive for this rapidly expanding small cap with offshore revenue exposure.

(Further to this - when our economy begins to recover, and when interest rates return towards historical averages, income stocks may suffer a revaluation.)