Look offshore for yield
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%.