Bank stocks' hidden strength

There’s one thing that rarely gets a mention when talking about dividend cuts.

Summary: Talk of the big four banks cutting their dividends ignores two major points: that dividends have been slashed by all four major banks as recently as 2009, and dividend yield projections are being calculated on current share prices, rather than the price at which an investor paid for a stock.

Key take-out:Very hefty yields still exist in the banking sector even while factoring in potential cuts - they are still a valuable asset for many SMSF holders in particular.

Key beneficiaries: General investors. Category: Shares.


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