Dividend yields likely to bounce higher
The big banks – long loved for their big dividend payouts, but disappointing in recent times – are favoured to pay out more.
Analysts expect many Australian companies to upgrade their dividends this year, with payout ratios likely to be boosted by better than expected economic activity, strong earnings and government stimulus – but investors should beware of falling into dividend traps.
Stephen Bruce, senior portfolio manager at Perennial Value Management, says the prospects for dividend increases across the market are very good in the coming financial year, as earnings bounce back post COVID-19.
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