Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 18 : 27-Mar-15

Morgan Stanley’s Christian Derold notes that a reduction in capital expenditure has enabled BHP Billiton and Rio Tinto to maintain high free cash flow. However, he believes that they will not be able to sustain their growth in dividends, citing factors such as the downturn in commodity prices and a low level of inflation in many countries. Derold favours stocks that have high gross margins and dividend yields that are lower but are more sustainable

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BHP BILLITON LIMITED – ASX BHPRIO TINTO LIMITED – ASX RIOMORGAN STANLEY AND COMPANY INCORPORATEDFORTESCUE METALS GROUP LIMITED – ASX FMG