The Age: Banks cutting dividends a cruel prospect for retirees

Plato Investments managing director Don Hamson has urged the big four banks to keep paying dividends to investors, warning that older investors could be “hung out to dry” if the banks cut yields.

With the Australian Prudential Regulation Authority telling banks last week to ‘seriously consider’ suspending decisions on dividend payments until the full economic toll of the coronavirus outbreak is understood, Dr Hamson said the lenders could use underwritten dividend re-investment plans to offer certain shareholders discounted shares instead of cash payouts.

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