Buy Hold Sell, by Livewire Markets

Where to find sustainable income and 2 traps to avoid

Dividend payments are back baby, or slightly more sustainable dividends at that. And with research from UBS finding dividends and franking credits accounted for 87% of returns from the ASX200 over the past decade, it couldn't have come any sooner.

Income investors suffered a bashing in 2020, with COVID-19 slashing any semblance of yield from the once-trusty banks and now-grounded travel stocks. While a one-off special dividend may have boosted spirits, investors have been left high and dry, hungry for a more sustainable source of yield.

In this video, Michael O'Neill from Investors Mutual and Peter Gardner from Plato Investment Management take you through their favourite sustainable sources of income in 2021 and call out two alluring yield traps to avoid.

Buy Hold Sell: 5 high-yield small caps

There isn't much that gets investor's blood running in a low-interest rate world like the promise of yield. More often than not, investors look to the top end of the market for yield stocks, but it's outside the ASX100 where uncovered dividend gems can be unearthed.

In this episode of Buy Hold Sell, Livewire's James Marlay spoke to Michael O'Neill of Investors Mutual and Peter Gardner from Plato Investment Management to discuss five ex-100 dividend candidates. Will these small caps impress the dividend detectives or are trailing yields a trap?

Stay tuned for a return of our new segment, Questions Without Notice, where Michael and Peter surprise each other with a never-before-seen question.

Note: The stocks featured in this episode of Buy Hold Sell were chosen for their high trailing dividend yields (dividends over 12 months divided by share price). There are a variety of reasons why yield may be high, for example, a one-off special dividend or a plunging share price. Watch, read or listen to the discussion below. This episode was filmed on 3 February 2021.

Buy Hold Sell: The 5 most-tipped small caps

Let's not beat around the bush here, your top-tipped small caps for 2021 are off to a roaring start. Together, these Aussie Small Ordinaries darlings have returned more than 52% - not bad for a fintech, a bookmaker, a rare earth's excavator, a biotech and a gift-card provider too.

We know it's early days, but who are we kidding, your most-tipped picks from previous years have performed consistently well. Your small caps from 2019 gained 43% for the year, while your tips for 2020 lifted a respectable (given the circumstances) 6.8%.

So, for this episode of Buy Hold Sell we've brought in the experts to get their take on your 2021 picks. Will Zip Co, EML Payments, PointsBet, Lynas Rare Earths and Polynovo continue to rain in returns over the year ahead, or will the illustrious list transform into a sea of red?

Plus, Market Matters' James Gerrish grills Tribeca Investment Partners' Jun Bei Liu on the company she believes has been overvalued by the market.

How you can sell like the experts

Warren Buffett doesn't like to sell. In fact, the famed investor once said his ideal holding period was "forever".  

It comes as no surprise, then, that selling can often be one of the most difficult parts of investing, and can render even the most astute investor sick to their stomach. Yet still we tend to hang on to our investments far longer than we should.

In this episode of Buy Hold Sell, we go back to basics, taking one of your most requested education topics to the experts.

Livewire's Bella Kidman speaks to Jun Bei Liu of Tribeca Investor Partners and James Gerrish of Market Matters for a deeper understanding of the ins and outs of selling, from identifying the right time to sell, facing bad company news, and deciding whether to sell your holdings gradually or in one fell swoop.

Buy Hold Sell: Readers' large-cap picks

CSL, Fortescue, Afterpay, Woodside and Macquarie. If you missed it, these stocks topped your list of most-tipped large caps for 2021. But - and let's not beat about the bush here - they haven't exactly got off to a flier. 

These stock picks have big shoes to fill, with your selections over the past two years returning more than 50%. So for the first BHS episode of the year, we've brought in the experts to get a sense of whether your 2021 picks can close the gap and give their predecessors a run for their money.

Watch until the end of the video, to see Livewire's Bella Kidman, Jun Bei Liu from Tribeca Investment Partners, and James Gerrish from Market Matters introduce our newest segment, Questions Without Notice, where our fundies' knowledge is truly put to the test. 

(Mini-spoiler: Only one of your picks received a resounding "buy" from our fundies, while two others were dubbed "sells" ... yikes.)

The best stocks to buy in a sell-off

It is a truth universally acknowledged that a decent investor, in possession of a good sense of opportunity, is in want of one great stock pick. Well, maybe not. But we all have at least one perfect stock we would bend over backwards to own at the right price, one worth waiting for, worth obsessing over, one worth writing a song about, until the perfect moment to pounce. 

Turns out some of Australia's best stock-pickers are no different. They too have a list of stocks they would snap up at the right price. 

In this year's Outlook Series, we've gathered 10 of the country's leading fundies to share their pick - with a few stocks catching more than one fundie's eye. 

Our featured experts include:

• Ben Clark, TMS Capital 
• David Allingham, Eley Griffiths Group
• Vihari Ross, Magellan
• Kelli Meagher, Sage Capital 
• Chris Demasi, Montaka Global Investments 
• Julia Weng, Paradice Investment Management 
• Matthew Booker, Spheria Asset Management 
• Olivia Salmon, Lennox Capital 
• Dr Bianca Ogden, Platinum Asset Management 
• Matthew Kidman, Centennial Asset Management 

The #1 stock picks for 2021

Welcome to one of Livewire's favourite times of the year, and we're not just talking about Christmas or summer, or having that well-earned after-work silly season cocktail. 

No, it's that very exciting moment when we invite some of the country's finest stock-pickers to put on their tipping caps and pitch which companies they believe will soar to fresh highs over the next 12 months. 

A quick look at the stocks our fundies have picked previously shows their choices reward attention. In 2019 they well and truly beat the benchmark, returning an average of 59% (an outperformance of 35.86%). And even during tumultuous 2020, our fundies' roared to return an average of 13.88%, beating the benchmark by 10.26%.

Here are the 10 fundies putting on their tipping caps for 2021:  

• Ben Clark, TMS Capital
• David Allingham, Eley Griffiths Group
• Vihari Ross, Magellan
• Kelli Meagher, Sage Capital
• Chris Demasi, Montaka Global Investments
• Julia Weng, Paradice Investment Management
• Matthew Booker, Spheria Asset Management
• Olivia Salmon, Lennox Capital
• Dr Bianca Ogden, Platinum Asset Management
• Matthew Kidman, Centennial Asset Management

Ouch! 10 awful calls from 2020

There are some trades that so fill us with joy we become like a proud parent championing their children's sporting achievements, talking the ear off family and friends, neighbours and colleagues, lovers, enemies - anyone who will listen.

Then there are those that make us sweat, keep us up at night, and force us to reflect on how it went all so very wrong. 

As part of our annual Outlook Series, we asked 10 of Australia's most talented fund managers to share their worst trade from 2020. From aircraft stocks plummeting to capital-raising opportunities foregone, from selling too soon to missing out on a sector rally, the fundies candidly reveal the trades that caused them both headache and heartache during the year just passed - and whether they believe the stock will be able to turn around over the coming 12 months. 

Our featured experts include:

• Matthew Booker, Spheria Asset Management
• Kelli Meagher, Sage Capital
• Vihari Ross, Magellan
• Chris Demasi, Montaka Global Investments
• Dr Bianca Ogden, Platinum Asset Management
• Olivia Salmon, Lennox Capital
• Ben Clark, TMS Capital
• Matthew Kidman, Centennial Asset Management
• Julia Weng, Paradice Investment Management
• David Allingham, Eley Griffiths Group

Positioning portfolio's for 2021

An investor's portfolio can say a lot about their outlook for markets. With vaccines on the way, a settled election and the index returning to its February 2020 highs the consensus is painting a rosy picture for equities. However, making a return on this good news after the fact is easier said than done.

That's like calling a bookmaker after the Melbourne Cup and saying, "Makybe Diva's won, I want to put some money on it." says Steve Johnson of Forager Funds.

In this thematic, Matthew Kidman leads the panel with Steve and Ben Rundle of NAOS Asset Management as the trio discuss their insights for 2021, the current opportunity set in the market and which sectors are presenting valuable opportunities right now.

Buy Hold Sell: 5 of the most traded stocks

The extreme volatility and sudden decline in asset values caused by the March sell-off have had a considerable impact on investors. Between January and May 2020, 54% of investors made changes to their portfolio, says the ASX Australian investor survey. Either looking to limit their losses or take advantage of deep discounts, investors were incredibly active. These two camps repeatedly came to together to make the most divisive stocks also some of the most frequently traded.

To discuss these companies, Matthew Kidman is joined by Steve Johnson of Forager Funds and Ben Rundle from NAOS Asset Management. The trio consider companies including, 1) Flightcentre - the travel company who rallied 50% in the last month 2) NextDC - who rode a surge in demand for data centres throughout the year and 3) a2 Milk -  who hit record highs in June but now are losing ground with rising China tensions.