Australian Investment Blog

Are the next few years about yield or growth?Morning allOverviewThe average annual capital return from the Australian share market is 7.35%, a solid number especially with term deposits only paying around 2.5%. However this doesn’t include the return from dividends. When dividends are included these returns become even more attractive with the average return from the All Ords Accumulation Index at 12.8% on a rolling annual basis over the last 35 years.This return equates to doubling your money in 6 years and tripling it in 9 years; our much loved property market would love to boast these statistics. However, the ASX200 in price terms is basically unchanged over the last decade, courtesy of the GFC, with the only gains, on an index basis, coming from dividends. So it is when you buy / invest in equities and of course sell them that dictates the return.Obviously over this decade there have been both some major winning / losing stocks and sectors within the overall unchanged Index.
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