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Dividends, franking and the new normal - a 40% decline?

With major Australian companies cutting and deferring dividends, investors relying on equities for income are facing a challenging year ahead. Martin Currie’s Australian equity team have crunched the numbers and estimate a cut of 40% in yield for the ASX200 in 2020.

With major Australian companies cutting and deferring dividends, investors relying on equities for income are facing a challenging year ahead. Martin Currie’s Australian equity team have crunched the numbers and estimate a cut of 40% in yield for the ASX200 in 2020.

 

So what are investors to do? In this timely conversation, investment specialist Eu-Jene Teng outlines:

  • The expected fall in earnings from Covid19, and how quickly investors can expect a bounce back
  • How dividends are likely to fare
  • Whether payout ratios are likely to be reduced permanently and what that means for equity investors
  • Which sectors offer the most promising outlook for yield, and 
  • How to position your portfolio to minimise the damage of an economic downturn.
 

You can access this and previous episodes of the Your Wealth podcast now on iTunesPodbeanSpotify or at nabtrade.com.au/yourwealth

If you’re short on time, consider listening at 1.5-2x speed, which should be shown on the screen of your device as you listen. This won’t just reduce your listening time; it has also been shown to improve knowledge retention.