There has been less volatility in dividends than in cash rates over the past 50 years

There has been less volatility in dividends than in cash rates over the past 50 years. Cash and term deposits may provide less income certainty than you think. Over a 50-year period; dividends have been more stable than cash. Based on this, you can have a higher degree of confidence that dividend yields will remain relatively stable and grow with inflation. Unlike term deposits, which in part reflect the cash rate, dividends are generated from company earnings. Many companies price their products and services to incorporate inflationary effects, which are then passed on to investors through dividends. The same cannot be said about cash or term deposit rates. Access three more insights you may not know about equities in this article: (VIEW LINK)

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