We previously looked at Cochlear and Woolworths as 2 of Australia’s best potential dividend stocks. What are the others that make the cut?
Investment in Australia for dividends can be considered fairly attractive for a variety of reasons including economic growth, favorable dividend taxation and a willingness of Australian companies to pay dividends What are the leading contenders in dividend stocks to consider ?
I continue to source much of my dividend income from Australia, even today. I’ve often wondered what makes Australia such a great place to source dividends from. Dividend payouts tend to be extremely favorable by international standards, even for small companies, with the average yield on the ASX 200 (the top 200 companies on the Australian Stock Exchange) in the order of 5%. I’ll outline my thoughts on why I think it makes sense to look to Australia for dividends and the factors that are in place for continued dividend performance in the Australian market.
The perception of dividend investing is that its for old folks getting ready for retirement who are looking to pick up a steady income stream in large companies with limited growth. While well established companies are certainly good candidates for paying dividends, one of the best kept secrets of dividend investing is that it can create an sustained increase in your net wealth as well.
The almost eternal question that comes up on blogs and finance websites is what should i be invested in, stocks vs bonds. The answer, almost always seems to be that it depends on the amount of risk that you are willing to take, your age etc. The one other thing I’d add to that is the returns you expect on your investment and the relative values of the asset classes at the time you invest. I am totally biased here on this one and tend to gravitate towards stocks almost all the time, and especially during this time.
If you have made the decision that direct investment makes sense, and you have worked out what it is you would like to buy, you then need to work out how to go about doing the actual buying. So what are the steps involved? [Read more...]
One of my goals very early on was to try and get myself financially independent as soon as I could. This didn’t necessarily mean seeking a very early retirement or dropping out of the workforce. More having the options to pursue the things I wanted in the way I wanted to pursue them. While I’m still not there yet, our “financial independence cushion” has built up to $25k/yr. So what’s the secret?
Holding a stock yourself instead of via a fund can deliver you some key benefits. Greater control over your ability to buy or sell as well as ability to directly access the dividends that the stock produces are just two of those reasons. But there may also be valid reasons for investing via a fund (whether its exchange traded or managed). What are the things to think about when consider whether to invest direct or via a fund?