Seems a fairly clear example of utilities in a bear market versus property companies and the market as a whole.
Interesting
Utilities down but not as much as property
Do you have the numbers relating to each line
I note that thing called The S&P/NZX 50 High Dividend Index measures the performance of the 25 companies with the highest dividend yields within the S&P/NZX 50 Index is under water over the last 12 months as well
Hello winner.
This what you asking for?
Selection of Indices for comparison.
Indices.png
Should have said those return numbers are %
All figures from NZX / S&P website.
"Select Real Estate" is apparently only the "largest & Liquid" of the property companies.
Quote from: Raven on Jul 23, 2022, 05:13 PMHello winner.
This what you asking for?
Selection of Indices for comparison.
Indices.png
Good stuff Raven ...thanks
3 year returns very telling ... esp seeing they are all capital indexes - go small caps
It's unfortunate S&P don't divulge the index constituents for free. Have to pay for that service.
However, the S&P factsheet does state there are 8 constituents in the All Utilities index, so I assume they are the electricity generators
CEN, GNE, MCY, MEL, MNW & NFW
plus VCT makes 7.
I'd be interested to know if anyone with a full service broker could confirm? I guess #8 is ...IFT??
EDIT - IFT is one of the constituents according to Investing.com
Interesting move in this article with major implications for MEL
https://www.stuff.co.nz/business/129610289/electricity-authority-makes-urgent-move-to-block-cheap-tiwai-smelter-power-deal
The Electricity Authority has blocked power companies from entering into large power contracts with customers "unless certain conditions are met" in a major, surprise intervention in the power market.
The "urgent amendment" to the Electricity Industry Participation Code impacts contracts of more than 150 megawatts and means power companies would not be able to strike a new power-supply deal to allow the Tiwai Point aluminium smelter to stay open beyond the end of 2024, without its approval
The authority's market policy manager, Andrew Doube, noted that it estimated last year that households were on average paying up to $200 more than they should for electricity each year because of the smelter's current power contract..
Goodness, that's an interesting development.
Extract from a Chris Lee email:
"..gross dividend yields of approximately 4.32% for MCY and approximately 3.97% for MEL with any future capital gains dependent on underlying demand for electricity.
New Zealand's total electricity consumption over the last decade based on actual sales has barely changed although there has been a fall in industrial use balanced by a rise in residential demand.
MCY has a P/E (price to earnings) ratio of 200 times and MEL has a P/E ratio of 180 which are both high when compared to industry peers Contact Energy (CEN) with a P/E of 22, Manawa Energy (MNW) with a P/E of 12 and Genesis Energy (GNE also 51% government owned) with a P/E of 30...
For a risk-adverse income investor it is hard to ignore that many senior bonds offer interest rates that exceed the dividend yield of the same company's shares.