The month of May saw the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) record a gain of 0.8%, breaking with the tradition that investors should "sell in May and go away." May also saw a number of quality stocks hit fresh 52-week highs which in most cases were also all-time highs.
Two sectors which appeared to gain particular favour with investors were entertainment and infrastructure stocks, with the following six stocks all in vogue:
- Amalgamated Holdings Limited (ASX: AHD)
- Ardent Leisure Group (ASX: AAD)
- Village Roadshow Ltd (ASX: VRL)
- APA Group (ASX: APA)
- Qube Holdings Ltd (ASX: QUB)
- Transurban Group (ASX: TCL)
The beauty of these six stocks is that they each own and operate high quality, niche assets which also offer relatively steady and defensive streams of earnings and equally importantly also pay dividends which should be maintainable.
As the ASX continues to grind its way higher, investors will naturally become more nervous that a correction is close at hand. The earnings growth outlook for these six stocks makes them attractive in their own right – particularly in a low growth environment – but their defensive characteristics makes them even more attractive in a fully priced market.
