Time is now for income-hungry investors: Bell Direct
Announcement posted by Bell Direct 11 Oct 2017
Media release
11 October 2017
Innovative online trading platform, Bell Direct, has urged income-hungry investors to act now to secure projected dividend gains in FY18, as the dust settles on the FY17 reporting season.
Julia Lee, Equities Strategist at Bell Direct, said that FY17 generally saw expectations met, but there were some disappointments for investors accustomed to the performance and outlook of traditional defensive stocks, such as, Telstra, QBE and Transurban.
“While the expected Telstra dividend cut has slightly weakened the overall FY18 dividend outlook, income investors should not be deterred. FY18 earnings growth projections remain strong, dividend payouts look to remain high, and there are plenty of stellar-performing companies on offer,” Ms Lee said.
“Income investors should focus on companies with a strong earnings growth forecast and not rely on past performance expectations. This is key in securing a sustained versus one-off dividend.
“The good news is that for income investors, dividends being paid out by Australian companies are at a record high. It is expected that those companies listed on the market will pay out more than $16 billion in dividends for September. That’s a growth of around 15% from the previous year.”
Dividends have always played a key part in the returns from the Australian share market. Since the peak of the market on 1 November 2007, the Australian share market is down 15%, while the accumulation index, which reflects the share price movement plus all dividend returns is up 32%. This highlights the importance of dividends in returns to shareholders in Australia.
“Post-reporting season is an important time for investors to reset their equity portfolios based on newly released information. Companies that outperformed expectations during a reporting season have a known track record of continued outperformance in the next six months. Now is an ideal time for investors to act,” added Ms Lee.
“For investors, the FY17 reporting season highlighted the correlation of strong earnings growth to dividend payout growth. Companies like Sydney Airport, Westpac and SG Fleet are examples of strong earnings growth, share price outperformance and growing dividends.
“It’s clear the Australian share market continues to be one of the most tax-effective ways for investors to generate income,” Ms Lee concluded.
ENDS
MEDIA ENQUIRIES:
Jessica Effeney, Honner
Tel: +61 2 8248 3745 / 0400 998 373
Email: jessica@honner.com.au
ABOUT BELL DIRECT
Launched in 2007, Bell Direct is an award-winning online share trading company backed by brokers, not bankers.
Bell Direct is 56% owned by the Bell Financial Group (ASX: BFG), a leading Australian full service broking and financial advisory firm with a strong track record of providing high quality, professional advice to private, institutional and corporate investors.
Bell Direct is committed to making smart traders smarter.
11 October 2017
Innovative online trading platform, Bell Direct, has urged income-hungry investors to act now to secure projected dividend gains in FY18, as the dust settles on the FY17 reporting season.
Julia Lee, Equities Strategist at Bell Direct, said that FY17 generally saw expectations met, but there were some disappointments for investors accustomed to the performance and outlook of traditional defensive stocks, such as, Telstra, QBE and Transurban.
“While the expected Telstra dividend cut has slightly weakened the overall FY18 dividend outlook, income investors should not be deterred. FY18 earnings growth projections remain strong, dividend payouts look to remain high, and there are plenty of stellar-performing companies on offer,” Ms Lee said.
“Income investors should focus on companies with a strong earnings growth forecast and not rely on past performance expectations. This is key in securing a sustained versus one-off dividend.
“The good news is that for income investors, dividends being paid out by Australian companies are at a record high. It is expected that those companies listed on the market will pay out more than $16 billion in dividends for September. That’s a growth of around 15% from the previous year.”
Dividends have always played a key part in the returns from the Australian share market. Since the peak of the market on 1 November 2007, the Australian share market is down 15%, while the accumulation index, which reflects the share price movement plus all dividend returns is up 32%. This highlights the importance of dividends in returns to shareholders in Australia.
“Post-reporting season is an important time for investors to reset their equity portfolios based on newly released information. Companies that outperformed expectations during a reporting season have a known track record of continued outperformance in the next six months. Now is an ideal time for investors to act,” added Ms Lee.
“For investors, the FY17 reporting season highlighted the correlation of strong earnings growth to dividend payout growth. Companies like Sydney Airport, Westpac and SG Fleet are examples of strong earnings growth, share price outperformance and growing dividends.
“It’s clear the Australian share market continues to be one of the most tax-effective ways for investors to generate income,” Ms Lee concluded.
ENDS
MEDIA ENQUIRIES:
Jessica Effeney, Honner
Tel: +61 2 8248 3745 / 0400 998 373
Email: jessica@honner.com.au
ABOUT BELL DIRECT
Launched in 2007, Bell Direct is an award-winning online share trading company backed by brokers, not bankers.
Bell Direct is 56% owned by the Bell Financial Group (ASX: BFG), a leading Australian full service broking and financial advisory firm with a strong track record of providing high quality, professional advice to private, institutional and corporate investors.
Bell Direct is committed to making smart traders smarter.