Charlie has his eye on banks, and I’m pretty sure that most of our subscribers will be avid readers of his article today. But he’s not the only one who loves the Big Four. Switzer Super Report co-founder and director Paul Rickard has had his eye on the yield play – that is, buying the banks for the dividends because interest rates are so low - for over a year now.
In May last year he said: “I don’t subscribe to the “banks are overpriced” theory, simply because there are no signs of the forces that could really threaten earnings or make bank shares less attractive.”
His preferred bank for all of last year – and yes, he used to work there – has been Commonwealth Bank and in May, Paul pointed out that: “Sometimes there are good reasons why stocks are expensive – and it pays to invest in those stocks rather than their cheaper cousins. Commonwealth Bank (CBA) is one such case.”