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Etienne Vlok from Constantia Investment Partners presents 'What happens when the person selling you the story, is also selling you their stock? ' at InvestmentMarkets November 2023 Virtual Investor Webinar

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.

In this presentation Lukediscusses the structural differences between the small and large ends of the ASX market, in particular the informational edge that can be gained by investors given there is less sophisticated coverage of smaller businesses.

We explore why ASX-listed microcaps can outperform the market over the long-term and why now is a particularly good time to be investing in this segment of the market following the sell-off over the last year. We also outline how active engagement with portfolio companies can help drive returns.