Bad news for banks & miners, where did all the dividends go & stocks with freebies
Feb 23, 2025
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The podcast dives into the struggles of banks and miners during the recent reporting season, revealing significant declines in dividends and profits. It highlights Commonwealth Bank as a standout performer despite the downturn. Listeners will also discover stocks that offer unique shareholder perks, learn to avoid common valuation traps, and explore the historical performance of gold versus silver. A fresh perspective on healthcare investments and their growth potential is shared, alongside enticing examples of perks beyond traditional dividends.
The Australian banking and mining sectors faced declines in dividends and profits, reflecting the cyclicality and market dynamics impacting these industries.
Investing in higher-quality, well-positioned companies often yields better long-term returns, underlining that cheaper alternatives may not provide the best value.
Deep dives
Targeting the Right Audience with LinkedIn Ads
Using LinkedIn ads allows marketing professionals to effectively reach key decision makers in their respective industries. Advertisers can target specific buyers based on criteria such as job title, seniority, company, and skills, enhancing the precision of their campaigns. This capability helps overcome the feeling of talking into the void by ensuring that promotional content is delivered directly to those most relevant to a brand's objectives. As a result, utilizing targeted ads not only increases visibility but also improves the chances of engagement with potential clients.
Impact of Australia’s Reporting Season on Companies
During Australia's reporting season, a significant number of companies, particularly in the banking and mining sectors, are experiencing challenging results. Major mining corporations like BHP and Rio Tinto have reported declines in dividends and profits, largely due to falling iron ore prices and production difficulties. Meanwhile, Australian banks have also shown dips in profits, leading to declines in their share prices, except for the Commonwealth Bank which reported growth. These trends underscore the cyclicality of these industries and the importance of understanding market dynamics when investing.
The Importance of Quality Investments
Investing in higher-quality market leaders tends to yield better long-term returns compared to opting for cheaper alternatives. For instance, companies like REA Group have significantly outperformed their competitors, emphasizing that higher valuations can often be justified by their robust market positioning and performance. Investors are reminded that the cheapest stock does not always equate to the best value and that it can be worth paying more for companies with proven track records. This principle applies across various sectors and is a vital consideration for anyone looking to build a stable investment portfolio.
Innovative Breakthroughs in Medical Technology
The advancements in medical technology highlight the incredible potential of investing in companies that create life-changing products. Gilead Sciences has made significant progress in developing medications for HIV, transitioning from daily pills to a promising twice-a-year injectable treatment. This innovation showcases how investing goes beyond financial gain, allowing shareholders to support groundbreaking healthcare solutions that enhance public health outcomes. By backing companies like Gilead, investors not only have the chance to achieve returns but also contribute to transformative health advancements.
The common lament you'll hear about is the Australian share market is “full of banks and miners”. And this reporting season has not been kind to those two industries.
Tune in to today's episode to hear what we've learned from reporting season, why Commonwealth Bank is bucking the trend and why banks & miners dragged the ASX 200 down 3% in a week.
That's not all we're talking about in another big episode:
The stocks that give shareholders additional perks
The 'valuation trap' we've learned to avoid
Why we love investing
Where did all the dividends go?
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In the spirit of reconciliation, Equity Mates Media and the hosts of Equity Mates Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.
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