This page will provide an overview of the types of shares and stocks you can buy depending on what you want to achieve and where you are positioned for retirement.
These are the shares you buy for capital growth, rather than dividends. Growth stocks are essentially shares in companies that are generating positive cash flows and whose earnings are expected to grow at an above-average rate relative to the market.
Yield stocks, ideally, are those that perform well in bull markets while providing partial downside protection for investors in bear markets. They are the stocks of choice for the income-seeking investor.
The stock yield is calculated by dividing the yearly dividends paid by the company to the company’s share price. For example, if a company is expected to pay out $0.50 in dividends over the next year and is currently trading at $20, the dividend yield is 2.5%
These shares are useful in times of uncertainty in the market and are considered safe havens.
These are the shares that don’t go down so much when times are tough because they sell consumer staples. Typically, these types of stocks provide a constant dividend and report stable earnings regardless of the state of the share market as a whole.
Currently the main shares we hold are growth and dividends with some speculative shares.
AFI.ASX – Aus Foundation Investment Company LTD
SOL.ASX – Washington H Soul Pattinson & Company
WAM.ASX – WAM Capital Limited
VEU.AXW – Vanguard ALL-world
VTS.AXW – Vanguard US
FBR.ASX – FBR LTD
PLS.ASX – Pilbra Minerals LTD