Bell Potter Director, Charlie Aitken, has downgraded his recommendation on the big banks to hold, saying share prices are unlikely to continue rising faster...

Bell Potter Director, Charlie Aitken, has downgraded his recommendation on the big banks to hold, saying share prices are unlikely to continue rising faster than underlying dividend growth. As the big banks hit new record highs, Aitken says he prefers a more neutral stance. I broadly think in the true sense Australian banking sector is now a hold rather than the outright buy we have recommended for that entire period, I expect banks to track their physical dividend growth from here, not outpace it. This is particularly so as cash rates eventually rise. My point today is I don't expect the 5 per cent yield to be bid down any further. At these share price levels and considering what large parts of portfolios banks have become, I simply believe I don't need to commit more fresh money to the sector or even reinvest dividends. Read the full article: (VIEW LINK)