Dividends explained If you are a shareholder of a company, you may receive payments known as dividends. These payments represent your share of the company’s profits and are your reward for investing. Dividends may be a great way to boost your income and are often considered tax effective. Find out exactly how they work and how often you’ll get paid. Why and when companies pay dividends When a publicly listed company makes a profit, its …
Telcos no place to find sustainable dividends in future Australia’s telecoms stocks have recently suffered a stretch that I could only describe as horrible, amid a very challenging industry pricing backdrop. The S&P/ASX200 Telecommunications Services Index has tumbled 33 per cent in the past 12 months alone. Many concerns have driven telecoms stocks lower, but the hazy outlook for dividend payments is what is making me steer clear of this sector for retirees seeking a …
There’s been a ‘changing of the guard’ among sustainable dividend earners Dividend lovers: we’re witnessing a bit of a changing of the guard when it comes to the performance of ASX listed companies. Financials and in particular banks – where investors have traditionally looked for their sustainable dividend growth – are beginning to be threatened for the mantle of sustainable dividend earners by so-called cyclical stocks, according to Dermot Ryan, AMP Capital’s Australian Equities Income …
Why tax aware investing can help boost retirement income With the huge bulge of baby boomers entering retirement, and yields at near-record lows, there is an emerging rediscovery of the vital role equities can play in delivering retirement outcomes. Equities provide retirees with a regular and reliable income that grows over time. They not only generate income and strong expected returns, but also protect against inflation risk and longevity risk (the risk of outliving your …
