Some recovery on the Dow Jones and Ftse. A risky rally and some relief short term. However if you are like me and want to shore up your portfolio, with defensive high yield shares, then these are 2 I suggest.
Scottish and Southern
Scottish & Southern Electric are one of the biggest electricity providers in Europe and the UK. They are a defensive high yield company (7%). Yes they are susceptible to the economy but everyone needs electric and I believe these worries are priced in at the moment. As you can see from the chart, they are still holding the support line I have drew just above £10, for 2 years now.
RSA insurance
Again this company like SSE above is holding at the support line in the chart below. They are considered quite a safe investment in the insurance industry, with a high yield at approx 7%. Of course they are not as safe as the drug companies or water companies but I think that this is a good opportunity to enter if you do not already have them. I would spread your risk and buy Aviva yielding 8% as well.
Remember these are investments for the long term and one big risk is they cannot sustain their dividend levels if there is any further deteriation in their business vs. say Glaxo and AstraZeneca where their dividend is pretty much safe and growing.
No comments:
Post a Comment