2 income stocks from the small end of the town

Financial journalist and commentator on 3AW and Sky Business
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With income-oriented investors in despair at paltry sub-2% term deposit yields – and the outlook for interest rates indicating that official rates could go even lower – investors are having to look further and wider than ever before, for income. The income aspect of share dividends has become a major attraction, with investors prepared to take onboard the fact that the dividends cannot be considered certain until they are paid; that dividends are paid at the company’s discretion, and can be cut at any time – even abandoned.

And it is not just the big banks and miners that are attracting investors: some small industrials are showing interesting dividend situations, at share prices that deliver mouth-watering yields – if the above caveats hold.

Here are two candidates from the smaller end of the industrial market where, if investors are prepared to take the equity risk, a lucrative yield situation could result.

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