Dividend cutters to beware of

Financial journalist and commentator on 3AW and Sky Business
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Dividend income from shares has been a massive story of the 2010s, driven by the biggest phenomenon of Australian investment this century: the staggering growth of self-managed superannuation funds. The demand from SMSFs for franked dividend income has become a huge influence on company management.

SMSFs are estimated to own more than 16% of the Australian share market – and companies are very keen to keep their dividend-hungry investor base happy.

This means that these days, the major listed companies will fight tooth and nail to keep their dividends sacrosanct.

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