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Buy Now 3 Dividend Payments and Ethical ASX Stocks: Fund Manager

Ask the fund manager

Motley Fool chats with the best people in the industry so you can get an idea of ​​what the experts think. In this edition, UEthical’s Chief Investment Officer, Jon Fernie, chooses three ASX strains that provide excellent defense and are ethical to launch.

Investment style

The Motley Fool: How would you explain your money to potential clients?

John Ferney: There is a U Ethical Australian Equity Trust. These are style-agnostic funds that have been able to provide investors with capital growth and income.And we integrate ESG Ethical considerations and fundamental analysis.

We are primarily investing in large cap stocks and believe that investing in a quality, ethical company with a reasonable reputation will yield competitive returns in the long run.

Perhaps one more thing I would like to add is, as an ethical fund manager, to screen stocks that we consider harmful to the environment and society. Next, we are considering holding positively influential shares and adopting a proactive stewardship approach through proxy voting with companies and industry collaboration.

MF: Do you think the recent power crisis in eastern Australia served as a wake-up call for a lack of investment in Australia? Renewable energy??

JF: Yeah, definitely. Not only what is happening within Australia, but obviously the conflict in Ukraine shows that it is happening more widely on a global scale. You can also see the dependence on fossil fuels in Europe. It probably highlighted the need for energy self-sufficiency, but it also highlighted the transition to renewable assets.

Hottest ASX strains

MF: What are the three best ASX stocks to buy right now?

JF: The first thing to emphasize Brambles Limited (ASX: BXB).. We believe that this logistics business is also managed with relatively defensive earnings. They have the top market positions in the world and trade in reasonable multiples.

I think the market is a little worried about the plastic pallet testing they are doing Costco Wholesale Corporation (NASDAQ: COST)And I think it’s a little overkill.

Aggressively, there was a significant drop in timber prices, an important input for them. Equity was also a potential acquisition target, and there were some preliminary discussions with suitors.

MF: This year it’s been pretty much worth it.

JF: Rumor has it that it hasn’t fallen as much as the other stocks on the market, but it has fallen by about 10% in the last 12 months.

MF: I wasn’t aware until you just mentioned that timber prices were actually going down. This is the only product that has fallen this year.

JF: yes. They were quite off.

MF: why is that? Is there an oversupply?

JF: yes. There are concerns about US housing … I think that is the main driving force for timber prices.

MF: And the next best purchase?

JF: The second is Suncorp Group Co., Ltd. (ASX: SUN).. I still like general insurance companies. Obviously there has been a huge surge in long-term bond yields, and given their investment portfolio, they will be their main beneficiaries.

Claim inflation is likely to remain high, but there are also very strong premium rate increases in most categories.And if you take stocks like Suncorp, they are now trading forward Dividend yield Nearly 6%.

MF: 6%? Wow, that’s not bad. The insurance industry likes it when interest rates rise.

JF: Yes, given their investment portfolio, they are heavily leveraged to raise interest rates.

MF: Your third pick?

JF: The 3rd one Sonic Healthcare Limited (ASX: SHL).. As a result, it is a well-managed business with diverse global operations and is not sold as dramatically as other stocks in the market. [about] 10% last month.

And we’re going to see their earnings normalized [after the company] We have benefited a lot from the COVID PCR test, and it will fall. However, if the volume of core businesses also improves and the global economy is in a slump, we generally believe that earnings are fairly resilient.

MF: I myself too Dividend payer In the same way.

JF: yes. But it’s not as attractive as Suncorp. At this point, the dividend yield is just below 4%.

Buy Now 3 Dividend Payments and Ethical ASX Stocks: Fund Manager

Source link Buy Now 3 Dividend Payments and Ethical ASX Stocks: Fund Manager

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