Dividend thinking

September 20, 2022

Equity investors in Australia are well versed in the virtues of dividends. Big payers from banks, retailers, and resources dominate ASX 200 weightings, and franking credits enhance the yield attractions.

Over the last 20 years, the portion of ASX 200 total return from income has outweighed that from capital growth, while over the same period, the story overseas is that dividends have often made a material difference but not to the same extent as in Australia.

In this op-ed Hugh Selby-Smith discusses the importance of income in total return while addressing the potential traps for investors relying entirely on company dividends to achieve it.

Read the full Investor Daily article here.

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