The Australian Dividend Landscape versus Global Dividends

By Apostle Funds Management in association with Dundas Global Investors December 2020

Global equities offer important diversification benefits. Blending global dividends offer benefits in a low interest rate environment.

This paper will discuss the outlook for the Australian equity market with regards to dividends and the subsequent impact this will have on total returns. Despite having a history of consistent dividends and high payout ratios, and the added benefit of the imputation tax system, the outlook for Australian companies looks susceptible to the market turbulence created by the COVID pandemic, with many industries facing strong headwinds.

This has exposed issues in the fundamentals of the Australian market, such as a lack of diversification by industry and market cap, which may present a case for increased global diversification in your clients’ portfolios.

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DISCLAIMER: The information contained in this article is produced by K2 Asset Management Ltd (“K2”) AFSL: 244393 in good faith and is intended as general information only and is not complete or definitive. K2 does not accept any responsibility, and disclaims any liability whatsoever for loss caused to any party by reliance on the information in this article. Any advice in this article is general in nature and does not consider your individual objectives, needs or financial situation. You should consider your individual circumstances before making a decision about any of the financial products discussed in this article. K2 is the issuer of a number of managed investment schemes. A product disclosure statement for the managed investment schemes referred to in this article can be obtained at http://www.k2am.com.au or by contacting K2. You should consider the product disclosure statement before making a decision to acquire or continue to hold an interest in the managed investment schemes.

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