Eight ASX listed cyclical stocks for 2021

Summary

  • Cyclical stocks belong to companies whose underlying business follows the economic cycles.
  • Business of such companies expand grow during economic expansions and vice versa.
  • Out of the 11 sectors on the ASX, four are generally defined as cyclical, namely – basic materials, consumer cyclical, financial services, and real estate.

Cyclical stocks belong to companies whose underlying business follows the economic cycles. Business of such companies expand grow during economic expansions, but decline during economic slowdowns, resulting in falling sales and profits. These are worst hit during recessions and other challenging economic scenarios. 

Thus, cyclic investing is a strategy followed by some investors which involves closely tracking stocks that closely correlates to the economic cycle.

Here we will discuss eight ASX-listed cyclical stocks with over 15% year-to-date (YTD) returns. However, one needs to do thorough research before taking any exposure, as sinusoidal market trends are evident.

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ARB Corporation Ltd (ASX:ARB)

ARB Corporation is in the business of creating, manufacturing, distribution, and transaction of motor vehicle related accessories along with light metal engineering activities. ARB Corporation has an annual dividend yield of 1.50% (as of 19 July 2021). The stock has given a YTD return of 46.09%.

Source: © Herrbullermann  | Megapixl.com

Domino’s Pizza Enterprises (ASX:DMP)

Domino’s Pizza Enterprises is under the consumer discretionary sector and the largest Pizza Chain for Network Store Numbers and Sales in Australia. Domino’s is in the business of franchise services and retail food outlets in Australia. The company has an annual dividend yield of 1.19% (as of 19 July 2021). The stock has given a YTD return of 36.84.

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Sealink Travel Group Ltd (ASX:SLK)

Sealink Travel Group operates as a tourism and transport company in Australia. Sealink has an annual dividend yield of 1.25% (as of 19 July 2021). The stock has given a YTD return of 35.5%.

Lovisa Holdings Ltd (ASX:LOV)

Lovisa Holdings is in the business of fashion jewelry related retailing. The company has presence across Australia, New Zealand, Malaysia, Singapore, Spain, France, the United Kingdom, and the USA. Lovisa Holdings has an annual dividend yield of 1.29% (as of 19 July 2021). The stock has given a YTD return of 33.04%.

Orora Ltd (ASX:ORA)

Incorporated in 1949, Orora is involved in innovative packaging solutions. Orora has an annual dividend yield of 3.51% (as of 19 July 2021). The stock has given a YTD return of 23.98%.

Source: ©Miflippo  | Megapixl.com

Tabcorp Holdings Ltd (ASX:TAH)

Established in 1993, Tabcorp Holdings is engaged in the gambling and entertainment services. The company’s operations are widespread across three segments: Wagering and Media, Keno and Gaming Services.  Tabcorp has an annual dividend yield of 1.54% (as of 19 July 2021). The stock has given a YTD return of 21.5%.

Breville Group Ltd (ASX:BRG)

Breville Group provides small electrical appliances in the consumer products segment. This Australian publicly listed company includes segments of North America, Australia, and New Zealand (ANZ) and Rest of World. Breville has an annual dividend yield of 1.09% (as of 19 July 2021). The stock has given a YTD return of 18.55%.

Corporate Travel Management Ltd (ASX:CTD

Corporate Travel Management is engaged in providing innovative and cost-effective travel management solutions to corporate management. The stock has given a YTD return of 17.10%.

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