- This article looks at two weekly TheBull.com.au stock picks.
- The first is QBE, a global insurer, and the second is TPG, an Australian telecoms company.
- Despite operating in markets with relatively stable growth, both of these companies offer a handsome dividend.
Come rain or shine, QBE Insurance Group (ASX:QBE) (QBE) and TPG Telecom (ASX:TPG) (TPG) are two listed Australian companies that will see demand for the essential services of insurance and telecoms, respectively.
High-interest rates will boost the net interest margin on premiums for QBE and a tight labour market will drive demand for comms. QBE and TPG will continue to benefit from the economic conditions present in Australia today.
QBE Insurance Group (ASX:QBE) (QBE)
QBE is a promising stock investment due to its recent strong underwriting performance, despite the challenges posed by inflation, geopolitical tensions and increased natural catastrophes.
The company’s ability to demonstrate resilience in such headwinds is a testament to its prudent risk management strategies and sound underwriting practices.
QBE’s gross written premiums of $20.054bn USD in the fiscal year 2022, representing a 13% increase from the prior corresponding period, are an encouraging sign of the company’s growth prospects.
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QBE’s statutory net profit after tax also rose from $750m USD in the fiscal year 2021 to $770m USD in the fiscal year 2022, indicating the company’s ability to generate higher returns for its investors.
QBE’s organic growth potential and increasing premiums are expected to further bolster its financial performance. The company’s focus on expanding its presence in key markets and diversifying its product offerings will likely result in a sustainable growth trajectory in the coming years.
QBE appears to be a promising stock investment opportunity for investors seeking exposure to the insurance industry.
TPG Telecom (ASX:TPG) (TPG)
TPG is a company with significant growth potential and a promising stock investment opportunity for investors. The company’s recent fiscal year 2022 result was relatively strong, boosted by the Vodafone Hutchison Australia merger.
The merger has resulted in a 1.5% increase in service revenue to $4.439bn AUD compared to the prior corresponding period, indicating the company’s ability to generate higher returns for its investors.
TPG’s mobile subscribers grew by 300,000 in 2022, demonstrating the company’s ability to attract and retain customers. The average revenue per user for mobiles also increased by 1.9% to $32.40 AUD per month, primarily driven by higher international roaming levels.
TPG has significant growth potential in the Australian telecommunications market, which is expected to grow in the coming years.
The company’s focus on expanding its network coverage, increasing its product offerings, and improving customer experience is expected to drive its growth trajectory in the future.
TPG’s strong fiscal year 2022 result, growing mobile subscriber base, and significant growth potential make it an attractive investment option.