Why Bank Dividends Could Be Under Threat

The plan to scrap franking credits has been canned, but there could still be an imminent threat to banks’ profits — and your dividends…

Download your free report to discover why the big four banks’ ‘dependable’ dividend payments might soon become unsustainable. Plus, get a FREE subscription to the daily financial email Money Morning. Simply enter your email address in the box below and click ‘Send My FREE Report’.

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Dear Reader,

The big four banks have long been an attractive staple for income investors due to their big dividends and franking credits.

With historical dividends like theirs, it’s easy to see why retirees look to the banks to supplement their age pension.

It’s a strategy that’s worked for a long time. But that could be about to change.

While Labor’s plan to scrap franking credits was canned, there’s still could be an imminent threat to the banks’ profits — and your dividends…

In a brand-new report from Money Morning, Ryan Dinse highlights three reasons why the banks could suffer.

Inside the report you’ll discover:

  • Why banking in 2020 could be radically different to what it was just a few years ago: This huge economic shift, happening under our noses, means the ‘old-ways’ of banking are almost over. New customers, new technology, and more competition could mean the end of the big four banks’ stranglehold on the financial system. That’s great news for consumers, but potentially bad news for dividend investors.
  • What the fallout from the Banking Royal Commission could mean for your dividends: After bad actors were pointed out, some decided to put the brakes on whole profit pillars like insurance and financial planning. Find out just how lucrative these arms of the business were, and the hole that’s going to be left in the bank’s balance sheet after they’re gone.
  • The key step banks need to take if they want to thrive: Without this, the ‘big four’ that dominate the financial sector today could end up fading away into relative obscurity. Former Commonwealth Bank CEO Ian Narev went as far as saying that, if CBA didn’t do this, they wouldn’t just lose customers, they’d be ‘toast’ within the next decade.

You’ll learn all this and more in the brand-new report: ‘How Your Bank Dividends Could Be Under Threat’.

To get your free copy — right now — enter your email address in the box below and click ‘Send My FREE Report’. You’ll get a downloadable PDF file delivered to your inbox within the next five minutes.

Download your free report to discover why the big four banks’ ‘dependable’ dividend payments might soon become unsustainable. Plus, get a FREE subscription to the daily financial email Money Morning. Simply enter your email address in the box below and click ‘Send My FREE Report’.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time.

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The Money Morning team cover share market developments, company announcements and economic events that may affect your wealth. They’ll take anyone to task — banks, governments, big business — if they think someone is trying to pull a fast one with your money.

Whether you agree with Sam, Ryan and the rest of the Money Morning team or not, you’ll find their common-sense, thought-provoking arguments well worth a read — and you’ll soon realise why Money Morning is the biggest circulation daily financial email in Australia.

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Download your free report to discover why the big four banks’ ‘dependable’ dividend payments might soon become unsustainable. Plus, get a FREE subscription to the daily financial email Money Morning. Simply enter your email address in the box below and click ‘Send My FREE Report’.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time.

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All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Any potential gains in this do not include taxes, brokerage commissions, or associated fees. Please seek independent financial advice regarding your particular situation. Investments in foreign companies involve risk and may not be suitable for all investors. Specifically, changes in the rates of exchange between currencies may cause a divergence between your nominal gain and your currency-converted gain, making it possible to lose money once your total return is adjusted for currency.

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