With major Australian companies cutting and deferring dividends, investors relying on equities for income are facing a challenging year ahead. Martin Currie’s Australian equity team have crunched the numbers and estimate a cut of 40% in yield for the ASX200 in 2020.
So what are investors to do? In this timely conversation, investment specialist Eu-Jene Teng outlines:
- The expected fall in earnings from Covid19, and how quickly investors can expect a bounce back
- How dividends are likely to fare
- Whether payout ratios are likely to be reduced permanently and what that means for equity investors
- Which sectors offer the most promising outlook for yield, and
- How to position your portfolio to minimise the damage of an economic downturn.
If you’re short on time, consider listening at 1.5-2x speed, which should be shown on the screen of your device as you listen. This won’t just reduce your listening time; it has also been shown to improve knowledge retention.