In 2010,stocks with the lower yields fared best,says Pankaj Patel,Managing Director for Quantitative Strategy at Credit Suisse.This should reverse in 2011.
The formula is to combine high yield and low payout ratio.That means yields greater than 1.5% and payout ratios less than 50%.Sectors with such a good current profile include consumer staples,health care,industrials,materials and energy,in Mr.Patel's opinion.
A low payout ratio indicates a good prospect of a company continuing to pay a dividend for an extended period.
From its 450 offices,Credit Suisse provides Private Banking,Investment Banking and Asset Management around the clock worldwide to corporate,institutional and affluent individual clients.It is also a retail bank in Switzerland.
Credit Suisse(CS)
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