I don't have much hope they will back track on their CGT change... We all have to figure out how to deal with the new (and sad) reality for those of us who just want to have a better future for our family by investing.
Not investment advice obviously... Just sharing this personal view.
This is my "strategy". An ideal investments would be able to grow very fast (so shareholder can capture the growth). Eventually, when growth slows, it will then proceed to pay out high dividends year after year (so avoid selling and trigger the CGT).
Junior miners will tick the boxes actually. Remember once a miner has developed its main "rock", its growth option is limited and FCF should spike. If management is sensible, they will pay out big dividends to shareholders.
An interesting anecdote. I went to an investment club yesterday. Several uncles (they actually tried to help and educate a youngling like me) suggested I should stay away from the miners. They were really not interested. Guess it makes sense as in the recent past, retail investors made a lot of money on the growth companies like ProMedicus, 4DX, Resmed, while the mining sector was rolling in the mud.
BUT.... I am finding junior mining stocks that can throw off significant FCF in 3-4 years if they hit their business plan. We are talking dividend yield of 50-100% based on current price here.
This is not a bad strategy in my view. Remember the mining sector has the overhang of the Iran/higher energy price/recession fear already. A bit cyclical. So room for upside if US/Iran eventually sort something out...
Crazy world.... We all have to find our path forward in the new world. Damn this stupid and irresponsible govt (just spend and tax and screw middle class folks like yours truly).
PS. Do your own research. Personal opinion. Not financial advice.
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