News & Insights

The Australian: Dividend machine clicks into gear

Yield-hungry investors will be buoyed by the early signs of resilience across corporate Australia from the latest profit season.

Of the major ASX-listed companies that have reported their results, most have been able to increase or hold their dividends in the face of an uncertain outlook due to the global economic slowdown that’s been exacerbated by the US-China trade war. Of course, the busiest part of the full-year reporting period lies ahead and the picture could change.

Of 168 companies in the S&P/ASX 200 index due to report their results in August, 22 per cent have reported so far. By the end of next week, that proportion will have risen to 80 per cent, giving analysts a good read on how companies are tracking.

Plato Investment Management is raising $200m via an entitlement offer on its Plato Income Maximiser LIC.

“With cash rates and bond yields plumbing to record lows, investors are increasingly looking for dividend payments as a replacement for their cash and fixed interest income,” the fund’s managing director Don Hamson said.

Mr Hamson said it was hard for retirees to live off the income from cash and fixed income.

“Retirees are struggling to make ends meet and should reconsider their income sources to look at active dividend investing,” he said. “Given the recent election result, retirees can continue to bank on receiving franking credits from Australian share investments and should consider taking advantage of the higher income on offer from them.”

Read the full article in The Australian