Look off­shore for yield

Money Magazine Australia - - SHARES | IN BRIEF -

Aus­tralian div­i­dends are highly con­cen­trated, with six big com­pa­nies pay­ing half of all div­i­dends on the ASX in 2017. They are the big four banks – Com­mon­wealth, NAB, West­pac and ANZ – as well as Tel­stra and BHP Bil­li­ton, ac­cord­ing to Don Ham­son, Plato In­vest­ment Man­age­ment’s man­ag­ing di­rec­tor.

He says that while there are good div­i­dend op­por­tu­ni­ties still on the Aus­tralian share­mar­ket, in­vestors should look to global shares where there are good div­i­dends but no frank­ing cred­its.

While the av­er­age div­i­dend yield of the MSCI world in­dex (exAus­tralia) is only 2%pa over 10 years, there are cer­tain coun­tries with higher yields. For ex­am­ple, the av­er­age div­i­dend yield of Span­ish com­pa­nies is 5.5%, in Fin­land and Por­tu­gal it is 4.8% while in the UK it is 4.2%.

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