Market Matters Special Dividend Report
Recently, the weekend Australian Financial Review led with "Can you still bank on the banks?" So I thought it was time to revisit the asset class upon which so many Australians are heavily reliant – dividends. I shine the spotlight predominantly today on the big banks and Telstra (TLS).
Investors are clearly becoming concerned that weakening global economies will lead to the world’s big banks being hit with a significant jump in problem loans, hence reduced profits and subsequently, lower dividends.
I personally find this fresh round of scare mongering rather ironic. Only two months ago, many were concerned that "yield play" investments were threatened by the US economy improving rapidly and interest rates getting set to rise. Now it's the reverse. How quickly sentiment can change in share markets.
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