News on the death of dividend investing seems to be everywhere.
The yield on the ASX 200, at about 3.5 per cent, is now firmly below term deposit rates and less than half the rates offered by private credit providers. Even much less risky bonds are trading at significant yield premiums to the ASX 200.
That’s led everyone from investment bankers to Warren Buffett to pile on against an investment strategy that works like it says on the tin – buy stocks in companies that pay out a higher proportion of their profit as dividends, rather than companies that reinvest all (or almost all) of their profits in themselves.
Dividend investing is usually used by investors that prioritise stable returns over share price growth.
Source: https://www.afr.com/wealth/investing/dividend-investing-isn-t-dead-these-4-charts-and-8-stocks-prove-it-20250205-p5l9ou