Banks, miners expected to lead dividend bonanza for local shareholders
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By Thuy Ong
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Dividend payouts from Australia’s biggest companies are expected to bounce back to pre-pandemic amounts in 2021, even as the nation grapples with the recent coronavirus resurgence.
Payments from firms on the benchmark S&P/ASX 200 Index may surge by about a third this year, returning close to 2019 levels, according to data compiled by Bloomberg. A rally in commodity prices and economic growth have helped blue-chip firms accelerate payouts, even as some companies may be cautious on dividends amid the recent outbreaks of the Delta strain.
Jul 20 2021
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Why Focus On Equities For Retirement Income
Martin Currie Australia argues that a focus on equity-based investment solutions that solve a client’s income needs is more important than ever in a post covid world.
-Retirees requiring a reliable income stream to focus on the actual dollar income generated over time
-Retirement products need to be built with the characteristics of “sufficient income for life”
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This meant sustainability of income, future income growth and diversification of income sources were important considerations for retirees. Sufficient income for life also focused on achieving a high and stable franked income stream to support annual expenses, income growth for inflation protection and capital growth to manage longevity risk.
When selecting funds, retirees should consider issues such as a focus on high quality companies, benchmark-unaware construction, maximising franking credit and the inclusion of inflation drivers designed for Australian retirees.
Reece Birtles, chief investment officer at Martin Currie Australia, said: “Retirees require a reliable income stream to replace the wages they received when they were working, so it is more important to focus on the actual dollar income generated over time, rather than the headline yield percentage.
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