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Why you can't rely on your dividends

Why you can't rely on your dividends

Many income investors will be tested financially like never before as savings rates and dividends fall.

Dividend deferrals, cuts or suspensions are a likely response to plunging corporate revenue.  Illustration: Karl Hilzinger

Investors watching their share portfolio tank as the COVID-19 panic escalates should brace for widespread dividend cuts as corporate profits tumble.

With economic recession seemingly inevitable, more companies are withdrawing their revenue and earnings guidance given the uncertainty of a once-in-100-year pandemic that is devastating the global economy and financial markets.

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Tony FeatherstoneFinance writerTony Featherstone writes on Personal Finance specialising in Superannuation & SMSFs, Specialist Investments.

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Original URL: https://www.afr.com/wealth/investing/why-you-can-t-rely-on-your-dividends-20200319-p54bsm