Income - Where to find the best dividends
Join Nathan, Evan, and Tom as they dicuss COVID-19s effect on disappearing dividends.
- Income yield and dividend yield are basically dead
- Dividend investors realise they need to look to a long term strategy and forgo dividends in the short-term.
- Companies face complex decisions regarding dividends and are caught between supporting their balance sheet, returning cash to investors, or undertaking potentially risky ventures that don’t always pan out.
While the COVID-19 crisis has affected multiple areas of the economy, one noticeable impact has been the dividend payments made on Australian shares. With Westpac, Bank of Queensland, and Qantas deferring their dividend, along with Insurance Australia Group outlining the limited scope to make a September dividend payment, it may cause alarm for those relying on the income component of their investments.
This week on From the Bunker, we discussed Where to Find the Best Dividends.
What we found was given that most asset classes have been affected; there is no silver bullet. Just as our fellow Australians have been stood down or made unemployed during this crisis, some dividend investors may need to forgo their income and the likelihood of dividends for some time.
In this week’s From the Bunker, we were joined by special guest, Nathan Bell, Head of Research and Portfolio Management at Intelligent Investor. Part of Nathan’s role is to oversee and manage our listed Australian Equity Income fund (ASX:INIF), so it was an excellent opportunity to find out his views on income.
Watch the recording below: