To cut or not cut? That is the question facing the National Australia Bank (NAB) Board. Just over a week ago, NAB announced another customer remediation provision, this time a whopping $749 million before tax for 1H19. Unsurprisingly, NAB announced a review of its dividend settings. We wrote about the... Show More
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
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
This will be short and likely controversial. There’s a lot of vitriol about dividend imputation these days. Much of it is misguided. However widely practised around the globe, double taxation of corporate earnings is unfair. Most countries acknowledge that fact indirectly by having low tax rates on dividends. Our dividend... Show More
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
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
Albert Einstein famously stated: “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.” We tend to agree – compounding returns over time can lead to some great results. So how does this play out in the world of small... Show More
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
Here are three things to focus on if you’re finding the rough and tumble of investing a little, well, rough. Show More
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
