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?