Education Series: How do Franking Credits increase the total return for investors?
Livewire Exclusive: Equity income – the best of a bad lot
“The market, on a six percent yield including franking, still looks pretty attractive versus a 1.5% cash rate, bonds sub-3%, term deposits 2-3%.” – Dr Don Hamson
Livewire Exclusive: Two critical signs of a dividend trap
Dr Don Hamson from Plato Investment Management says that if the yield looks too good to be true then it’s probably a good sign the dividend is not sustainable.
Livewire Exclusive: Where are the best prospects for dividends?
Dr Don Hamson, Managing Director of Plato Investment Management, says the best prospects for dividends now sit with Australia’s big iron ore miners.
The lost decade for Australian shares: but don’t forget the income!
Over the 10 years to the end of 2016, the ASX/S&P200 price index has tracked predominantly sideways. But equity investing is not all about capital growth…
Analysing the 2017 asset test changes
Why 7.8% p.a. earnings is the new black for pensioners
US Trumpits: Brexit revisited?
In a turnaround almost identical to the UK Brexit vote, the US confounded all the pollsters by electing billionaire Donald Trump as the 45th President of the USA.
IAG buy-back: Marginal at best
IAG announced a lacklustre result, cutting its final dividend by 3c compared to last year, whilst announcing a small $300m off market buy-back. Whilst we generally like off-market buy-backs as a mechanism to distribute franking credits to investors who most value them, this buy-back is relatively underwhelming based on our analysis.
Token Telstra Buy-back Mark II
Telstra announced it would return $1.5B in capital to shareholders, $1.25B in an off-market buy-back and $0.25B in an on-market buy-back. The off-market buy-back is similar in structure to the $1B 2014 Telstra buy-back. We still believe this is pretty much a token buy-back.