THE PROBLEM

Finding a reliable dividend yield

There are several challenges facing investors who are looking to generate reliable income streams to fund their lifestyle.

Persistent high inflation, slowing economic growth, and impending interest rate hikes have created difficult conditions for equities investors looking to build wealth while protecting their hard-earned capital.

Higher inflation has meant that traditionally safer income vehicles, such as bonds and term deposits, have become less attractive to investors looking to generate a high yield from their portfolios.

While equities remain a viable option for income through stocks that pay dividends, investors can often come undone by focusing on the wrong criteria when it comes to stock selection. 

The average Australian dividend investor is obsessed with yield and rightly so. This is no wonder given the two structural issues that have permeated the Australian investing psyche over the past couple of decades. From the tax efficiency of franking credits together with the aging population moving into retirement it is no wonder that tax-efficient high yield securities have become the mainstay of many portfolios.

Many investors make the mistake of chasing high-yield, fully-franked Australian dividend stocks, neglecting the fact that it is the earnings that drive the ability of a company to pay dividends.

If earnings fall, it is likely the future dividend profile will come under pressure as well.

Simply searching for ASX stocks with high dividends is not enough if you are looking for reliable income.

Our solution to this problem and how we find the best Australian dividend stocks is Quality Yield.

THE SOLUTION

It's time to start investing in Quality Yield

What is Quality Yield?

Quality Yield is a set of investment criteria developed by the experienced analysts at HALO Technologies to help investors find better income stocks for their portfolios.

It attempts to derive a list of blue-chip companies that offer an attractive yield (minimum of 5.0%) and are continuing to increase their dividends per share (DPS) over time through steady earnings growth.

Companies that match these criteria must also have a net debt-to-equity ratio of less than 30% and a return on equity greater than 10%. This ensures that you are only dealing with quality companies that have low leverage and are less likely to cut their dividend payments.

Why is Quality Yield important?

The importance of Quality Yield explains why an investor may choose an established, reliable company with a 4-6% dividend yield, despite being able to easily find more speculative stocks paying a dividend yield of +10%.

Yield alone is not sufficient as an explanatory variable for to be included as Quality Yield as we are more interested in the ability for it to maintain or grow its income. In other words, we are attempting to take you beyond the mere concept of yield being a current forecast phenomenon.

In our many years of analysis, we have encountered the conundrum of investors choosing yield on the basis of absolute yield levels. This simple investment philosophy is too dangerous for us to consider as legitimate as it is often the case a high yield is too good to be true.

At HALO Technologies, we would much prefer a 5-6% dividend that could sustainably grow to 10% of the initial investment over a few years, than a 10% dividend for a company in terminal decline. This income investment philosophy has helped HALO Global users identify reliable high-yield income opportunities without sacrificing any capital growth.

THE SOLUTION

What is the Quality Yield Formula?

Market Capitalisation

> AUD$1b

Focusing on larger companies

Dividend
Yield

> 5%

The Australian market has averaged around 4.5% over the past two decades. Above average yield is targeted.

Dividend per share growth

(DPUg) > 0

It is imperative to grow your income stream. When DPUg turns negative, it is often the case a company’s shares are de-rated leading to capital loss defeating the purpose of having an equity portfolio which substitutes for traditional fixed income.

Net Debt to Equity

< 30%

Low leverage which immediately EXCLUDES Banks and high leverage infrastructure companies.

Return on
Equity

> 10%

This provides a quality factor to the notion of yield.

THE SOLUTION

How to Find Quality Yield companies with HALO Global

new-yield-companies

HALO Global is a global equities research and execution solution that has been designed by professional fund managers to help investors save time, find better opportunities and make smarter decisions for their portfolios.

Our solution brings institutional-grade tools, signals and monitors to self-directed investors who are serious about maximising their returns and growing their wealth.

The Quality Yield Monitor is unique to HALO Global and can be applied to any market in the world and will identify the companies that currently match our Quality Yield criteria.

This list of reliable, income producing companies updates automatically with new opportunities as they become available and can be combined with our buy now signals to identify ideal entry and exit points.

WHY HALO

The tools investors need

More Data, Better Research

HALO Global gives investors unparalleled access to reliable global financial data.


While other equities research solutions may only show a historical snapshot of a company’s financials, HALO Global is able to deliver more insights for investors with forecast data from the world’s biggest research firms and brokers.

See the historical performance of a company’s profit and loss, balance sheet, cash flow and more as well as how they are likely to perform in the future with predictive consensus data up to 3 years into the future.

Global Investing, Simplified

HALO Global provides investors with low-cost access to the largest and fastest-growing companies around the globe.

With our solution, you can analyse and invest in over 35,000 securities across 30 different exchanges – including the ASX, NASDAQ, NIKKEI and more.

Not sure where to get started? Explore our 26 ready-to-invest share portfolios centred around the world’s biggest trends including International High Dividend, Artificial Intelligence, Warren Buffet Top 10 and more.

THE SOLUTION

Feature-rich solution for Income Investors

Charting Interface

Dividend Forecast Chart

Dividend Monitors

Stock Scanner

Stock Blender

Portfolios

Signals & Monitors

Broker Consensus

Portfolio Management

Charting

Truly understand the potential of a company with our market-leading charting interface developed by professional fund managers. Clearly visualize market expectations, signals, price profitability, dividends, franking credit levels and more on a fully-customisable chart.

Expected Dividends Chart

This feature is a must-have for all income investors looking to better manage their dividend cashflow. The Expected Dividends Chart calculates and visualises all of the dividend payouts you are likely to receive from your holdings and lets you know which month you can expect them on a rolling 18-month forecast.

Dividend Monitors

HALO Global offers income investors two unique monitors to help find better opportunities and make smarter decisions.

The Quality Yield monitor is an automatically updating list of stocks that offer investors a minimum 5% dividend yield, show positive Dividend Per Share growth and have low leverage. This can help investors identify blue chip stocks that pay high dividends.

The Falling Dividends Per Share (DPS) monitor is a risk management tool for income investors and provides a list of companies that analysts expect to have negative Dividend Per Share growth over the next two years.

Income Stock Scanner

Looking for reliable fully-franked, high-yield dividend stocks? HALO Global has got you covered.

Scan entire exchanges in seconds for opportunities that match your investment goals. Turn your scans into watch lists that update daily with new companies that match your criteria. HALO Global can help you find Australian blue chip shares with good dividends.

Stock Blender

Combine your scans with our comprehensive list of signals, monitors and universes to easily identify double, triple and even quadruple-blessed opportunities for your portfolio.

Ready-to-invest Thematic Portfolios

Unique to HALO Global are our ready-to-invest thematic portfolios, known as Vues. Each portfolio has 10 hand-selected companies centred around an investment trend or theme.

The International High Dividend Vue, for example, is a list of international blue chip stocks that have a high yet reliable dividend yield hand-selected by our investment committee.

Signals & Monitors

Designed by professional fund managers, HALO Global makes institutional-grade signals and monitors accessible to everyday investors. Easily identify potential entry and exit points on the companies you are interested in with easy to understand buy and sell signals.

Broker Consensus

Invest with confidence with aggregated Broker Consensus Recommendations and EPS revisions from the world’s biggest research firms.

Portfolio Management

HALO Global has been designed to help investors make smarter decisions for their portfolios. Compare your performance against a variety of benchmarks. See which shares are the major contributors to your portfolio performance and which shares are on the decline. Better understand your portfolio’s asset and sector allocation and how they work towards your investment goals.

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FAQ

Frequently Asked Questions

General Questions

What is HALO Global?
General Questions

What is HALO Global?

HALO Global is a equities research and execution solution that allows users to analyse and invest in over 35,000 shares and ETFs across 30 exchanges.

HALO Global has been designed by professional fund managers to help investors save time, find better opportunities and make smarter decisions for their portfolios.

Why should I use HALO Global?
General Questions

Why should I use HALO Global?

HALO Global has been designed by professional fund managers to help investors save time, find better opportunities and make smarter decisions for their portfolios.

If you are serious about improving your performance and growing your wealth, HALO Global can help.

 

Important:

Before making an investment decision, you should consider your personal circumstances, objectives and needs and seek a professional investment advice.

How can I trust HALO Global as an investment service provider?
General Questions

How can I trust HALO Global as an investment service provider?

HALO Global is offered by HALO Technologies Pty Ltd ABN 54 623 830 866 which is a Corporate Authorised Representative No 1261916 of Macrovue Pty Ltd ABN 98 600 022 679, the holder of an Australian Financial Services Licence No 484264. Please read our Financial Services Guide for further information. We are also one of the few Australian companies to be registered as a Qualified Intermediary with the IRS in the U.S.

We have strong governance procedures in place and the management team has several decades of experience with leading fund managers, brokerages, and investment banks. Please see our About Us page for more information.

Our Philosophy
General Questions

Our Philosophy

There are many great ideas out there. Finding discerning ways to turn those ideas into equity investments can be daunting when you have reams of data and information to wade through and limited access to professional analysis.

At HALO, we do the hard work for you. Our team is dedicated to constructing portfolios of 10 stocks each, called Vues, that give you exposure to a selected theme, while also allowing you the flexibility and control to fine-tune as you go.

We are targeting do-it-yourself investors looking for a new way to invest a portion of their savings and engaged in deciding how best to allocate their money. Our users demand the transparency and control that much of the superannuation industry doesn’t provide.

We are committed to looking beyond our own beautiful shores to opportunities in the world’s largest and most dynamic economies so that you don’t miss investing in the next chapter of China’s growth story or the U.S. recovery or the Internet of Things that’s reshaping our lives. The majority of our Vues are blind to borders, looking only for the stocks that best express a theme. So, not only are you diversified through multiple companies, you are also geographically diversified.

Come join us and explore a new world of ideas.