This week will see $18bn of dividends received by investors as heavyweights BHP Group (BHP), RIO Tinto (RIO) and Telstra (TLS) reward loyal shareholders, a huge amount of cash some of which will undoubtedly find itself moving back into stocks providing a huge tailwind for the index. To put things into perspective the whole of October will see shareholders receive less than $10bn in dividends although again this could still help the index regain its mojo.
- We believe this tidal wave of dividends will help the ASX find a meaningful low in the coming weeks.
NB The ASX Accumulation Index assumes that dividends are reinvested hence it measures both growth and dividend income. More commonly quoted indices such as the ASX200 (non-accumulation indices) do not take dividends into account and measure price growth only.
MM is bullish on the Accumulation Index targeting fresh all-time highs into 2023
