Australian Stocks: Dividend Contribution to Total Returns Since 1900

Australian stocks are known for their high dividend yields. Aussie firms tend to stable and growing dividends and investors also benefit from franking credits. Dividend payments have been consistent over the long-term when compared to stock price appreciation according to an article by Dr Shane Oliver at AMP Capital. From the article: Chart #4 A bird …

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Australian vs. Global Share Returns in 30 Years: Chart

Australian stocks have outperformed global shares in the past 30 years thru December 2016. The average annual return for Aussie stocks was 9.1% compared to 7.1% for global shares according to the following chart: Click to enlarge   Source: Fidelity Australia Download: Australian vs. Global Share Returns in 30 Years (in pdf) Related ETFs: iShares MSCI …

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Australian Stocks’ Growth and Major Events Since 1900

In an article yesterday we looked at how Australian stocks beat cash and bond since 1900. During this period there we many major political and economic events that shook Australia and the world. In general, investors have always something to worry about. For example, today it is North Korea. Just a while ago it was …

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The Power of Compounding: An Australian Example

Albert Einstein said “Compound interest is the eighth wonder of the world”. Compounding of interest over many years will lead to multiplication of the original principal or capital many times. The following example shows the power of compounding for various Australian asset classes: Click to enlarge   Source: Five great charts on investing, AMP Capital From the above article: …

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The Economy of Australia: Infographic

Some of the important facts of the economy of Australia is shown in the infographic below. The top three destinations for Australian exports are China, Japan and the US. The top three exports are Iron Ore, Coal and Education. The presence of the education sector as one of the largest exports is surprising. Though Australian universities are attracting …

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