History has shown that when it comes to building long term wealth, investors who accumulate shares in well managed companies with sustainable business that pay a steady, growing stream of dividends are usually the most successful.
This resource is dedicated to investors in Australian shares who wish to pursue a strategy that has investment in ASX listed dividend paying stocks as its central theme. Dividend investment strategies are efficient for non-professional investors to execute and as we will show below, deliver excellent returns compared to other investment strategies. The best shares provide an exponentially growing dividend income stream while building a substantial capital gain.
Share dividends are a major component of stock market returns. In times of sideways trading markets, dividends can reward patient investors who are waiting for share price growth to return. Dividends reimburse share holders for risk, funding costs and potentially even hedging costs. Dividend income investment is a proven method that focuses on selecting shares that provide reliable and growing dividends.
As an example, in the recent, turbulent decade to June 2012, the S&P 200 index gained just 2.2% pa. The accumulation index which includes the value of reinvested dividends paid by S&P 200 companies grew 5.7%. The average benefit of dividend franking on the S&P 200 has been calculated by the Eureka Report at 1.33% pa. That would make the 10 year return on a hypothtical portfolio of S&P 200 shares 7.0% pa. This illustrates the significance of dividends and franking credits to investors in Australian shares.
At last count, around 850 public companies pay dividends to their shareholders. Australian investors in Australian domiciled shares have the additional benefit of reaping the franking credits associated with franked dividends. This has the net effect of increasing the effective dividend yield to the investor by up to 43%.
Australia’s Most Comprehensive Dividend Database
Effective stock research requires access to accurate and up to data information. Dividends.com.au curates a robust and accessible historical dividend database for ASX investors. This is supplemented with historical yield, return on investment and cum-dividend share price information.
Unique Trading & Investing Opportunities
The nature of the dividend stock investing in Australia is unique in two ways which create opportunities for traders and investors. The first is the system of dividend franking highlighted above. The second is the application of the 45 Day Rule condition for eligibility to the dividend franking credits.
We post regular articles describing results from testing dividend investments and trading stategies. These are based on our historical dividend database and propriety modelling systems. These serve to help you formulate your own investment strategies. We also offer a custom modelling service if you would like us to assist you test your own theories and ideas.
Dividend Investment News
Dividends.com.au scans the online world for topical Australian news relating to dividends. This icludes company specific dividend news and event, developments regarding dividend taxation, dividend focused managed funds and financial academia.
Its all about the Dividends…
Our objective is to help Australian dividend investors, traders and SMSF trustees by providing timely, reliable and quality dividend information, opinion and news. You have access to Australia’s most comprehensive and accessible database for examining historical dividend payments and trends, regular articles plus Australia’s only dividend stock ranking system. Make Dividends.com.au your first stop for dividend information.