Question of the Week

Questions of the Week – all about the big four

Co-founder of the Switzer Report
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Question: How secure is NAB’s current dividend since it is currently providing a gross yield of over 10%? 

Answer (By Paul Rickard): Less secure than the other majors. According to FN Arena, the major brokers, on consensus, forecast a small dividend reduction in FY19 from $1.98 per share to $1.90 per share. I would also factor in a small cut to the dividend.

Question: My mother has a substantial investment in CBA. She uses the dividends to fund her retirement. Will CBA ever recover to its heady heights within the next few years? Or are we heading for a further drop? Should we sell CBA before it drops further, or sit and hold?

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