Suncorp Group, a leading insurer in Australia and New Zealand that provides banking, general insurance, life insurance and superannuation products will release its interim fiscal […]
Suncorp Group, a leading insurer in Australia and New Zealand that provides banking, general insurance, life insurance and superannuation products will release its interim fiscal 2017 earnings on Thursday, 09 February 2017.
Since 09 November 2016 (post U.S Presidential election), Suncorp has continued to outperform the benchmark ASX 200 index where it has gained 15% as at Thursday, 02 February 2017 versus a return of 9.6% seen on the ASX 200.
One of fundamental factors that supports Suncorp’s outperformance is its dividend pay-out. Its annual dividend growth rate in the last five year is at 14.21% which surpassed the industry average rate of 11.22%. In addition, its average five-year dividend yield is at 5.42% which is almost doubled the industry average of 2.5%.
In the incoming earnings release, consensus for Suncorp’s dividend yield is pegged at 5.78% (close to its 5-year average) which is more than the average dividend yield of the benchmark ASX 200 at 4.2%.
Therefore, Suncorp is considered as a defensive stock where it may outperform in a period of rising risk aversion.
Let us now take a look at Suncorp from a technical analysis perspective.
(Click to enlarge chart)
Intermediate support: 12.65
Pivot (key support): 12.04
Resistance: 14.70/95
Next supports: 11.27 & 10.11
In the short-term, Suncorp may see a minor decline first towards the 12.65 intermediate support (former swing highs of 23 September/07 October 2016 & the 50% Fibonacci retracement of the recent up move from 09 November 2016 low) and as long as the 12.04 pivotal support holds, another potential upleg is likely to materialises to target the next resistance at 14.70/95.
On the other hand, failure to hold above 12.04 is likely to invalidate the preferred multi-month bullish scenario to open up scope for a deeper decline towards the next support at 11.27 and even the significant February 2016 swing low of 10.11.
Charts are from eSignal
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