Paul Rickard has more than 25 years experience in financial services and banking, including 20 years with the Commonwealth Bank Group in senior leadership roles. As the founding CEO and Managing Director of CommSec, which he established in 1995 and led until 2002, and then as Chairman till 2009, Paul was named Australian ‘Stockbroker of the Year – Hall of Fame’ in 2005. Follow Paul on Twitter @PaulRickard17
Our high income stock portfolio continues to perform well – outperforming the market, and perhaps more importantly, on track to deliver its forecast income returns. The outperformance is not that surprising considering it is overweight financials, telecommunications and healthcare, and relatively underweight materials and energy.
On 19 December, we introduced our ‘income biased’ portfolio of stocks. The portfolio is forecast to generate a dividend yield of 5.82% per annum, which given it is 97% franked, translates to a forecast 6.87% per annum after-tax income return in accumulation, and for a fund in pension phase, 8.08% per annum.
Since December 15 (the date the portfolio was first priced), the portfolio has risen 4.7%, well ahead of the S&P/ASX200, which is down 1.1% in that time, as well as the S&P/ASX200 Accumulation Index, which is up 1.4%. And that's without factoring in the taxation benefits of holding fully franked stocks in super, which we'll break down for you in a moment.