How Much Did Dividends Contribute To Australian Stocks’ Total Return Since 1900

The Australian equity market has one of the highest dividend yields in the world. With franking credits the current yield is around 6%.

Since the 1900, the average annual return for Australian stocks is 11.8%.Dividends contributed over half of this return as shown in the chart below:

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Source: Five great charts on investing for income (or cash flow) by Dr.Shawn Oliver, AMP Capital

Unlike the volatile capital appreciations (blue) dividend returns are mostly stable over the years. This is because companies consistently pay dividends and most avoid cutting or suspending dividends.

From an investor standpoint, smooth dividend payments not only provide stable income yearly and but also helps to cushion portfolio returns during volatile years. Unlike dividend price appreciation is not reliable.

Related ETF:

  • iShares MSCI Australia Index Fund (EWA)

Checkout: The Complete List of Australian ADRs

 

The Top 50 of S&P Global Platts Top 250 Energy Firms 2019

The S&P Global Platts Top 250 for this year was published last month. These firms are ranked based on asset worth, revenues, profits and return on invested capital. This ranking considers only publicly traded energy firms.

The following table shows the Top 50 of S&P Global Platts Top 250 Energy Firms for 2019:

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Source: S&P Platts

The complete list of firms can be found here.

A few observations:

  • Out of the top 10, Russia is represented by 3 firms
  • China’s Sinopec(SNP) came in at number 10.
  • With 2nd rank, US oil giant Exxon Mobil (XOM) was only below Shell.
  • Equinor(EQNR) of Norway is worth watching for growth next year.

Disclosure: No Positions

Germany’s Major Trading Partners 2018

The following chart shows the major trading partners of Germany based on 2018 data. The top export market for Germany is the U.S. followed by France and China. In terms of imports, the major country for imports into Germany is China. The US ranks 4th as the major import source country.

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Source: De Statis

China and the US are the only two countries outside of Europe that are major trade partners of Germany.

Germany has a trade deficit with the US as it exports more to the country than it imports.