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.
Australian banks haven’t had a good start to the year. And it might not get any better. The mega giant, Finch Rating, has tipped 2016 to be stable for banks, but profits could be unsatisfying.
At US$35 per barrel crude oil, nearly every US shale company is cash flow negative. So, energy firms are burning through cash and other forms of liquidity.
Conventional wisdom says that if you want a ‘safe’ and diversified portfolio, you should allocate most of your share portfolio to blue-chips.
When it comes to growth, few stocks offer better growth opportunities than small-cap stocks.
Simply put, when you invest in the biggest market capitalisation stocks on the ASX, you’re basically investing in the broader direction of the market — not in quality business.
Had they decided to lower the cash rate, the RBA would have been put in the position of being seen to be underwriting the banks’ profits.
You’re well aware that investing is not risk free. You only have to look at the performance of the ASX — or any of the world’s other stock markets — this year to verify that.