With the Australian sharemarket’s dividend yield already 4.3% – well above the average of 2.5%-2.6% for developed markets – nine out of ten companies this reporting season have maintained or increased their dividends as boards favour capital management over investment, according to JP Morgan and AMP Capital. From The AFR:
Franking credits available to Australian shareholders means it makes sense for Australia in a higher-yielding market, [JPMorgan equity strategist Jason Steed] said. The Australian market has a dividend yield of 4.3 per cent, compared to the average developed market dividend yield of 2.5 to 2.6 per cent.
