Yovich & Co. Market Update - 10 September 2018

Sep 10, 2018 | Commentary

Interest or Dividends.

This section compares term deposits and shares.

When comparing what to invest in people often look at the yield of the investment. This example compares term deposits and Shares within these two Australian banks, Westpac and National Australia Bank.


Share price and Dividends IRESS/WBC.NZ Dividends

Westpac dividend yield is 1.93 times greater than the interest rate of 3.45% for the 12-month term deposit.



Share price and Dividends IRESS/NAB.ASX Dividends

National Australia Bank owns Bank of New Zealand, the dividend yield is greater by 2.09 times than the interest rate of 3.40% for the 12-month term deposit. 

Gross yield is one way to evaluate an investment, other factors such as risk appetite of the investor and liquidity of asset are also important. Shares hold a higher level of risk but greater liquidity than term deposits. 

Looking at Property for Retirement or Building Wealth?

As the average house price increases, the NZ dream of owning a property seems to be disappearing. Fortunately, there are other alternatives to building wealth through property, via Listed Property Companies (LPC). LPCs open the door for investors who want an investment correlated to the residential and/or industrial property sectors, without a significant upfront investment. The investment of LPC units is then diversified through different property sectors, graphical locations, and building types. The investment can be easily liquidated if needed and does not require any management from the investor. Below is a list of our preferred LPCs.


 Source Figure 19 Property companies/Forsyth Barr/IRESS



Prepared by Walter Yovich and Nathanael McDonald







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Walter Yovich

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Westpac National Australia Bank Vital Health care Property Trust Stride Property Group Kiwi Property Group Goodman Property Trust Argosy Property ARG.NZX GMT.NZX KPG.NZX SPG.NZX VHP.NZX WBC.ASX NAB.ASX


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