Microsoft: move to subscription model makes for ‘sticky’ revenue

Peter Wilmshurst

Back in 2006 when we first bought Microsoft, the market was concerned about the future of the company’s consumer division – even though it represented only five percent of total sales. We saw great long-term potential for Microsoft to transition its enterprise software business to a subscription-based model, which would... Show More

Dividends. What’s all the fuss?

Roger Montgomery

In the last few days Opposition Labor Leader Bill Shorten has proposed a radical transformation of dividend imputation. Putting aside his mistaken belief that his voters are “Aussie Battlers”- when in fact they are hard-working small business owners and contractors, many of whom receive franked dividends from their business endeavors... Show More

How to spot a sustainable dividend

Dermot Ryan

On average, companies in the top 10 per cent of expected dividend yield deliver negative earnings growth, negative dividend growth and underperform the market over time, our analysis suggests. To find the companies with genuinely sustainable dividends, you need to dig much deeper than these simple historical measures. Show More

The yield trap of 2017

Daniel Mueller

Want to know the biggest yield trap of 2017? Each year there are dividend plays that turn out to be yield traps. In 2012, it was QBE. During 2012 to 2014, we saw several consumer stocks turn out to be yield traps including Seven West Media, David Jones and Myer.... Show More

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Sacrificing the Future

Jordan Eliseo

The recently released Economic outlook from the Carlyle Group, titled “The search for yield and business investment”, focused on why corporate investment has been so weak in the past few years, despite record low interest rates. With income streams from “safe” investments (cash and government bonds) at record lows, it... Show More

Is Now The time to follow a dividend yield strategy? Will These Companies Hold Their Dividends?

Niv Dagan

Leading into the earnings reporting season, a lot of analysts are questioning whether AUS companies will hold their dividend yields... Credit Suisse has come out with the report recently that the dividend yield (DY) strategy has not been working in the last couple of years. We believe this is usually... Show More

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Why Yield Convergence In Equities Should Have Investors' Attention

Rudi Filapek-Vandyck

Mass contraction in global bond yields has led to yield convergence in the Australian share market where most stocks, whether they be industrials, financials or commodity producers, are now yielding between 4-6%. Probably the biggest surprise is that this convergence has attracted so little commentary, analysis and attention to date.... Show More

Revisiting our Dividend views for the ASX200 With 50% of returns from the local share market coming from dividends over the last 20 years, it's not difficult...

Nicholas Forsyth

Revisiting our Dividend views for the ASX200 With 50% of returns from the local share market coming from dividends over the last 20 years, it's not difficult to understand why Australian investors are correctly focused on dividends. The unprecedented low interest environment now clearly appears to have a few more years'... Show More