4 ‘outside the square’ high yielders to consider

Financial journalist and commentator on 3AW and Sky Business
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Income-oriented Australian investors have long used the stock market as a source of dividend income, helped by the dividend imputation system, in particular its munificence to low-tax-rate investors, such as self-managed superannuation funds (SMSFs).

As official interest rates have slid over the last decade from 7.25% to a record low of 1.5%, and term deposit rates have more dropped from the 7%-plus levels to average five-year territory of 2.6%, fully franked share dividend yields in the 4%–5% range – which generate a grossed-up yield of 5.7%–7.1% – are routinely achievable on the stock market.

But several recent developments have clouded the view.

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