ASX has a great chart & reasonable dividends. I see CS has a target price of $55.00 on it. Most brokers have a sell or hold.
Why is ASX not good buying for conservative investor, looking for fair dividends with growth?
A: I am with the brokers regarding the ASX and think it is horribly expensive. A sell!
According to FN Arena, a consensus broker target price of $60.10 , 21% below the current price of 76.10. 2 neutral recommendations, 6 sell recommendations. Trading on a forecast PE of 30.0 times FY19 earnings, 29.0 times FY20 earnings.
Sure, the ASX is a monopoly and has annuity like earnings. But the yield is just 3.0%, and the growth rate in earnings was 7.1% for FY18 over FY17, a forecast 5.7% for FY19 over FY18, and a forecast 3.4% for FY20 over FY19.