Australian Finance Podcast

4 dividend shares to add to your watchlist

9 snips
May 14, 2025
Dive into the world of dividend investing with insights on what dividends are and their benefits. Discover the risks of chasing high yields versus focusing on sustainable growth. Learn about four noteworthy investments: Macquarie Group for stability, Charter Hall Long WALE REIT for property yield, Washington H. Soul Pattinson for long-term growth, and the Vanguard High Yield ETF for income diversification. Plus, understand how to balance income with growth for a solid financial strategy!
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INSIGHT

Dividends Explained

  • Dividends are a share of company profits paid to shareholders, not guaranteed like interest from banks.
  • Over time, dividends can grow significantly, potentially exceeding the initial investment in some cases.
INSIGHT

Power of Franking Credits

  • Australian dividends often come with franking credits, which are tax credits that can reduce your tax bill or increase refunds.
  • These credits enhance the tax efficiency of dividend income compared to many other countries.
ADVICE

Beware High Dividend Yields

  • Avoid chasing stocks with the highest dividend yield as it may indicate risk or unsustainable payments.
  • Yields over 7-8% should be treated cautiously since high yields often signal potential problems.
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