Paul, I am surprised to see Origin exited from income portfolio. Do you not see a recovery in share price and dividend even with near future 2015 LNG exports from Gladstone?
A: Thanks for the question.
The reason for taking Origin out was that I wanted the portfolio to be underweight energy – so it came down to a choice between Origin and Woodside.
My thinking about the Energy sector is that it always takes longer to feel the full impact of major price shocks – so my guess is that we haven’t seen the bottom on prices in energy related stocks just yet.
I prefer Woodside over Origin for this portfolio because it is probably a little more insulated, dividend yield is higher, and it is fully franked.
