Buyback boom signals dividend pain for ASX investors

For decades, the Australian sharemarket was the world’s cash machine for income investors, where companies paid handsome dividends, providing a predictable income stream relied upon by retirees. But a quiet, Wall Street-inspired revolution is underway.

Across the ASX, companies are using their surplus cash to buy back their own shares rather than write dividend cheques. The shift is ringing alarm bells for income-focused funds, signalling a potential change in the DNA of Australian equity investing.

Source: https://www.afr.com/markets/equity-markets/buyback-boom-signals-dividend-pain-for-asx-investors-20251125-p5ni6y