Large-cap stocks – the big banks, miners, Telstra, Wesfarmers and Woolworths among others – have been heavily sought after for their dividends for years. But professional investors are warning the dividend pool could be coming to an end.

While Australia had long held the mantle of paying the highest dividends in the world, it has lost that title to Singapore with payouts, particularly in the banking sector, slashed through the COVID-19 pandemic. Macquarie analysts forecast shares in the S&P/ASX 100 will shrink their dividends by 4 per cent in financial 2021 while those outside the top 100 will boost their dividends by 4 per cent.