Australian equities are set to continue to provide dividend income for retirees more so than safe haven assets, according to a retirement income specialist.
Plato Investment Management managing director Don Hamson said despite the hearsay that dividends would be diminished as a result of the pandemic, gross equity income looks better as results on cash products diminish.
The Plato Australian Shares Income Fund has generated gross income of 9.4% per annum since inception with the inclusion of franking credits and special dividends.
“We’re looking at generating gross income of around 7% including franking credits from Australian equities in the next 12 months because we’re highly active and have been able to rotate into the companies that have emerged as sustainable dividend payers, if you’re active you can still get strong yield,” Hamson said.
“A good decision is based on knowledge and not on numbers.”
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