The Big Re-Think (TLS Sexy Again)

Lots of financial commentators out in the media all of a sudden preaching the virtues of diversification and defensive stocks. The same muppets who were advising us all to ‘stay fully invested’ and ‘lean towards growth stocks’ only a month ago…..they blow with the wind that lot.

It’s times like these that TLS is a pretty good place to be. Trump Tariffs barely relevant to this particular stock. I picked up a couple of parcels of TLS late last year when it looked a bit unloved and oversold. Over the past couple of years it just hasn’t been sexy enough amongst all the surging tech/growth stocks. But now as a safe defensive stock with a reliable dividend (and nearly all domestic earnings) it has held up well.

TLS is currently No.11 on the ASX by market cap - here is some analysis on how it’s performed against the Top 10.








Just holding its ground is a big outperform in the current market. A moderate capital gain just a bonus if it happens as the market rotates to defensive.

TLS will always be subject to a degree of government meddling and competitors will come and go picking away at its margins…..the likelihood of a burst of capital growth is almost zero but I think it could creep towards $4.50 in a shaky market with investors retreating to safety.

TLS is about as close to a fixed term deposit as a stock gets yet paying around a 6% grossed up dividend puts it well ahead. Here is it's dividend history over the past 5 financial years :




TLS will be finding its way back into the mix of many portfolios if these Trump related dramas continue - certainly worthy of its place in a
well diversified and balanced portfolio.