Stocks we like – Fisher & Paykel Healthcare
As the global commodity rout continues, investors are searching for sectors that can provide safe haven for their capital. Many are seeking exposure to the anticipated growth benefits of an ageing population, which has caused some healthcare stocks to trade at levels that are difficult to justify. Fisher & Paykel Healthcare (ASX: FPH) is one such company, whose NZ$8.50 share price is factoring in considerable earnings growth, but such is its prospects we feel the company may present reasonable value.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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James
:
Hello,
I read with interest this article and as a result looked further into FPH.
One thing that stood out was that it pays an unfranked dividend, which back in 2010 was not a compant that Roger deemed fit to invest in and I quote ” a company that pays a completely unfranked dividend creates the largest tax liability of this type for its shareholders as they need to pay tax on it at their full marginal rate of tax. Why is the company creating a tax liability where none was necessary? A company that does this is not acting in the best interests of its shareholders. It is not really interested in the true position of investors”
Have things changed since 2010?
quote from value-able 2010
thoughts please….
Roger Montgomery
:
Hi James,
Good pick up however those comments (and those HERE) are in the context of companies raising capital at the same time and diluting shareholders.