I don't think a 10% gross return will hold the SP at 60c, simply because there are other stocks around that are trading at prices giving better returns.
AJA - trading at under $0.45 with 7c distribution giving 15.5% return. Trading at half NTA.
OAK - trading at under $0.40 with 6c distribution giving 15% return, but fully franked which means a true 21% gross, important if you have to pay tax this year like most of us.
TSI - trading at under $1.05 with 12c distribution giving 11.4% return. Very solid infrastructure fund.
RCU - will probably be over 20% at todays SP. Needs to be confirmed by a fresh announcement, but SP of 0.15 was supposed to return 20% gross.
I haven't done the calcs, but even some blue chips like CTX, QBE, the banks, they will be close to 10% gross as they are all fully franked.
I think the MCW share price is only high because its so close to EX DIV date, and a lot of people want the income, but will sell afterwards, and it should drop back to 50ish cents in the short term.
I sold out of MCW a while ago, wish I held still but couldn't afford it. the 20% share price jump in last week from 50c to 60c would have been great to get.
MCW Price at posting:
61.0¢ Sentiment: None Disclosure: Not Held
