Janus Henderson

Australian companies’ dividend payouts are down 24 per cent from a year ago, as higher interest rates and cash flow challenges darken the outlook. Payouts from miners decreased significantly, although the dividend picture remains positive for banks.

Dividend investing can be a good source of defensive income in volatile times, but changing fundamentals mean resources companies and banks may be the weaker play in 2023, with opportunities emerging beyond these traditional Australian dividend payers – although valuation will be key.

The dividend wave that has surged on to the global markets shows no sign of abating. Australian investors have been of the the biggest beneficiaries, but that may change.

In the latest quarterly data for FY22, both Perpetual and Pendal Group recorded fund outflows of $4.0 billion, Magellan lost $5.2 billion and US$11.9 billion exited Janus Henderson. GQG Partners was the one shining light, recording inflows of US$2.8 billion.

Last week’s effort by the Federal Reserve to curb inflation by raising US rates by another 75 basis points will likely see inflation decline in 2023 and will likely tip the economy into recession.

The Australian stock market has long been known as the place to be for income-loving investors. Why? Because company dividend yields in Australia are amazingly high. The dividend yield for 2021 and 2022 is forecast to be 4%-5% plus franking, compared to cash rates and fixed-interest products yielding below 1%. According to Morningstar, S&P/ASX 200…

Portfolio managers are urging investors who are considering emerging markets to examine countries individually and understand their health systems and governance risks as to whether they will show resilience. Emerging markets have not been spared from the volatility caused by the COVID-19 outbreak. Alessia Berardi, head of emerging markets macro and strategy research at Amundi…