Writing for Firstlinks, Redpoint Investment Management CEO Max Cappetta shares some research and insights on generating income from Australian dividend paying stocks.
The upcoming reporting season will affirm how the global COVID-19 pandemic has impacted businesses and sectors in different ways. Aggregate dividend payments over the next 12 months will likely be back in line with that paid in calendar 2019 pre-COVID. However, the sources of these dividends will be different to previous years.
The Australian equity market has now returned to its pre-February 2020 highs, at least in price terms. For the S&P/ASX200 Index, forward earnings estimates have returned to pre-COVID levels while share prices are, on average, 11% above pre-COVID highs.