Buy, hold, sell: Three dividend traps (and two you can trust)

To get a sense of the base level of earnings is difficult to gauge. They need to generate some outperformance in their flagship strategy.

FUM's share price has fallen 48% since the beginning of the year. Ally Selby wonders if it's worth the risk for the trailing yield.

Don Hamson recommends three dividend traps and two trusty investments. He recommends to sell the fund. He thinks it's too early to call it at the moment. It's not a great outlook for the growth style.

Alumina has a gross trailing yield of around 14%. Don asks Ally Selby if it's a buy, hold, or sell.

Don Hamson sells because of higher costs and alumina prices. He doesn't own the company.

Ally Selby is looking at three dividend traps and two trusted ones.

Alastair MacLeod recommends selling Magellan Energy. He thinks it's a sell for income investors. He also thinks there may be an opportunity for a total return perspective.

Ally Selby is looking for a buy or sell on Tabcorp. TabCorp announced the demerger of its lottery business earlier this year.

Alastair MacLeod recommends Tabcorp as a sell. The company has a retail channel and sports betting, but the dividend yield is flat. It's a buy for Alastairs.

Ally Selby is looking at a company whose share price has fallen 2% since the beginning of the year.

Don Hamson likes the company. He thinks it's good value. The company recently announced better results.

Ally Selby shares her tips on how to avoid a dividend trap.

Ally Selby is excited about the fundies bringing along one long-term sustainable dividend payer for the year ahead.

Don Hamson likes the energy stocks and buys Woodside. He thinks Wood side has quality assets and a great dividend outlook for a number of years.

Al is looking for a sustainable dividend payer today.

Alastair MacLeod recommends buying Tabcorp and The Lottery Corporation. The lottery business is a regulated monopoly. The company has a high level of profits and a low level on the cost of capital. It's expected to have around a 4% yield.

Ally Selby asks if a 4% yield is attractive when inflation is high.

Alastair MacLeod likes the 4% yield and the capital base growing at 10%.

Ally Selby has no time for today. Ally hopes you enjoyed the episode. Livewire Markets has a weekly video series Buy Hold Sell.