Stocks that outperform in an inflationary environment

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Platypus’s Jelena Stevanovic, who is hooked on WeCrashed, explains the upside for CSL, and why SiteMinder’s IPO stands out.

Which stocks are positioned to increase dividends?

However, this favourable backdrop and earnings growth is not expected to be sustained beyond the next financial year as commodity prices are not expected to continue to climb. Banks as well are in a good position to pay attractive dividends as capital positions, broadly speaking, remain strong.Can CSL’s share price reach $300 again this year?due to the industry-wide decline in plasma collection volumes .

Siteminder is still in a very early phase of its growth, investing heavily into its expansion, and therefore the company is yet to reach profitability. Heightened valuation risk in the market, on the back of the rising yields environment, is unlikely to be supportive of the share price performance in the near term despite decent operational execution and large addressable market.Advertisement

You could argue that valuation risk for some of those big healthcare names is still high but current-year earnings for the likes of CSL and Cochlear are still negatively impacted by COVID-19 disruptions. So that valuation risk is somewhat overstated – especially when you consider the main impact on earnings was due to lockdown restrictions.

 

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