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: Click to enlarge Source: Five great charts on investing …

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Concentration Risk is High in Australian Equity Market

One of the important factors to consider when investing in equity markets is concentration risk. To put in simple terms, if a market is highly concentrated or dominated by a handful of firms then the risk is high and vice versa. This is because high concentration leads to severe declines in a down market. A …

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Comparing Yields on Australian Stocks, Bonds and Term Deposits: Chart

Australia is one of the top countries for high dividend yields for stocks. Dividend yields are high in Australia due to the concept of franking which basically prevents dual taxation of dividends to both the company and the individual investor receiving the dividend. When compared to other asset classes also Australian stocks have better yields. …

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Bear Markets in Australian Stocks since 1900

The bear markets in Australian stock market since the 1900 is shown in the table below. The first column shows the bear market dates – bear market being defined as a decline of 20% that is not reversed within the next 12 months. The second column shows the duration in months and the third shows …

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Could Australia’s Luck Run Out?

Australia is known as the lucky country. It is rich in natural resources, has a small population and has a stable democratic government. The country hasn’t had a recent in recent years. In addition, Australia have never had bank collapses like in other developed countries such as the US in recent memory. The lucky country …

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