Bank dividends are safe

Bell Potter

Stockbroker

One common retail investor query relates to the sustainability of the major banks’ dividends going forward. Historical dividend reductions in our view are the result of unique events. These include external liquidity shocks, high inflation and credit growth rates in an overheating economy (leading to monetary policy tightening that would have adverse consequences for credit quality and banks that are heavily dependent on wholesale funding), high current account deficit and largely higher unemployment – clearly not the case today. A benign outlook ahead for each of the economic indicators should then underpin the banks’ ability to continue paying dividends. &feature=youtu.be


Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.