Dividend dash leads investors astray

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by Chris Becker

Australian stocks have long been hailed for their dividend yield, which has averaged some 2% more than the rest of the world:

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The reasons for this gap are two fold, a structural abnormality due to the overly generous tax advantage of franking credits and the huge dividend payout ratio of Australian corporates, who historically remain unable or unwilling to get off the gravy train.

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