Thu 16 Nov 2023 | Tim Richardson
The hidden risk in dividend investing
Rising inflation, higher interest rates and slowing economic growth all pose separate threats to the attractive dividends currently being paid by Australian companies. Income hungry investors should also note that over 80% of Australian dividends are paid from companies in just four sectors. This forces many portfolios of income investors to be highly concentrated. The share prices of these companies are exceedingly sensitive to dividend payments, which potentially leaves these stocks under pressure if dividends falter.
