Make what you will of trans-Tasman rivalry, when push comes to shove Kiwis and Aussies love each other like family. And like family, there are always ups and downs. ANZAC Day is a day to remember both the sacrifices of our military service men and women, and the standing partnership between our two countries.
This enduring relationship has resulted in success for many dual-listed companies, and with this in mind here is an instant five-company portfolio featuring some of the best and brightest prospects with operations on both sides of the Tasman.
Auckland-based Fisher & Paykel Healthcare (ASX: FPH) designs, manufactures and markets healthcare devices to assist people breathing, competing against fellow healthcare company Resmed (ASX: RMD). The company has a well-managed growth strategy in place which has seen operating revenues grow 44% over the last five years. In February the company increased its profit guidance for the second half of FY13, with profits expected to jump 14% on the prior period, while the company’s newly opened Mexico production factory will likely lower costs further going forward.
Origin Energy (ASX: ORG) is not dual listed, but owns 53% of New Zealand electricity producer and retailer Contact Energy (NZX: CEN) – one of the largest energy producers and retailers in the country. This holding adds a dollop of diversification to Origin’s portfolio of Australia electricity generation and LPG production. The 37.5% stake Origin holds in $24.7 billion coal seam gas project APLNG gives the company prospects of strong cash-flows over the long term when the project comes online in mid-2015, as demand peaks.
Australia’s only publicly listed health insurance company NIB Holdings (ASX: NHF) has made huge strides in the last five years, growing earnings per share a massive 29% per annum compounded. Last year the company announced a grand entrance into the NZ health insurance industry with its acquisition the New Zealand’s second largest health insurance provider Tower Medical Insurance for $81.3 million. Despite NIBs share price rising strongly over the last six months the company still sells for a reasonable price-to-earnings ratio of 15.
SkyCity Entertainment (ASX: SKC) adds some spice to the ANZAC portfolio with a healthy dividend yield of 3.7% and growth on the cards. The company generates 60% of revenues from the flag-ship Auckland casino, which it operates as a monopoly, but also has casinos across NZ as well as Adelaide and Darwin. SkyCity has a number of expansion plans in place to grow revenues and have recently been scouting opportunities in the fast growing Philippines.
A final pick is financial group AMP Limited (ASX: AMP). AMP holds a strong brand on both sides of the Tasman offering financial services and life insurance. The company pays a worthy dividend yielding 4.7% and will produce strong cash flows over the coming years benefiting from the strong sales network and recent addition of AXA Asia Pacific.
The company’s selected would provide a well-rounded and diversified portfolio spreading across a range of industries from healthcare to gaming, as well as a mix of both growth and dividend focused companies. With many of the company’s operating in a number other of regions outside of Australia and NZ there is also a degree of diversification in geography, something all good portfolios should try and embrace.
Like dividend stocks? With its legendary, fully franked 28 cent dividend, Telstra is the darling of Aussie investors. But with its share price skyrocketing over the past year, is Telstra past its prime? Click here for our brand-new report: “Is It Time to Sell Telstra?”
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Regan Pearson owns shares in FPH and SKC.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020