Portfolio Change - Sell Healius | Increase Woodside Energy & Metcash
We recently exited the Healius holding in the portfolio as the company suspended its interim dividend to conserve cash due to its elevated near term gearing levels. Stocks in the Income portfolio are required to pay dividends and Healius no longer meets this constraint. The funds raised have been reinvested in two existing holdings, Metcash and Woodside Energy, which trade on a forecast, fully franked dividend yield of 5.4% and 6.7% respectively.
Metcash is Australia’s leading wholesale grocery distribution and independent retailer services company with three divisions competing in the Food, Liquor and Hardware businesses. Metcash’s execution on the strategies of each of its segments has demonstrated sufficient momentum to grow market share for the Food business and expand the store network of the Hardware division. It currently trades on a 12 month Forward Price Earnings Ratio of 13.2 times.
Woodside is the largest oil and gas company listed on the ASX with a market cap of $69bn and forecast annual production of around 190 MMboe, currently trading on a forward Price Earnings Ratio of 11.1 times. Its global portfolio of producing assets has a diversified production mix of 48% LNG, 24% Natural Gas, and 24% oil and condensate, while its future production projects include Scarborough LNG in Western Australia and the Sangomar Field in Senegal.