Australia’s big four banks all climbed this morning. In dollar terms, the big four Aussie banks collectively added $4.17 billion to their market cap.
After releasing its quarterly update today — an impressive 31% increase in profit — ANZ shares are trading at $30.70. That’s a 35% jump in just over six months.
Investors have bought up all the big-cap stocks as world markets recovered. Meanwhile, they’ve so far ignored the market’s tiny stocks.
Investing in these stocks is not without risk. But in today’s strange market conditions, the biggest risk by far is failing to take any risk at all.
Sometimes it pays to remember why microcaps are so much more exciting and full of potential than the ‘safe’ companies most people refer to as ‘blue chips’.
Last week’s edition had some fascinating research. The focus was on the performance of small-cap stocks versus large ones.
It’s time Aussie investors take the leap, ditching the bricks and mortar and paper trades for the shiny gold stuff.
If total market profits fall further than dividend payouts, the ratio will increase. That’s part of what happened in 2008 and 2009.
It's going to be difficult for the bank stocks to replicate the massive growth they've enjoyed over the last 20 years. If you're in the chase for dividends, you need to open your sights further.
All of the major banks have enjoyed a great run over several decades, steadily increasing their dividends along the way.