Drew Meredith

speaker

386 appearances 1 recordings 1 series first heard Jan 2023 last heard Jan 2023

Drew Meredith’s voice in public audio — every appearance, attributed to the second.

Trend

recordings per month · last 12 months

No recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.

Appearances

newest first · ▶ plays the moment

Australian Finance Podcast · 📈 3 dividend income stocks for 2023 | ft. financial adviser Drew Meredith · 26 Jan 2023 podcast

I mean, a big reason for dividends being high is probably the nature of the tax system here, where dividends are more favorably taxed than capital gains.

Whereas if you head over to the US, the capital gains are taxed more attractively than dividends over there.

So that's why things like on-market buybacks of shares in the US are more popular versus big, chunky, fully frank dividends.

And franking credits are central to that entire discussion.

I think you want a combination of both.

There's two things you want from every investment, income or growth.

Some are going to give you more income and some are going to give you more growth.

I mean, the reason one company wouldn't pay a dividend, generally you'd think is because they can invest that money better themselves.

By paying a dividend, they're saying they've got nothing better to do with it and they're paying it out to shareholders.

That's the way macroeconomics 101 would probably explain it.

But it does get to a point in Australia where if you cut your dividend, your share price is going to struggle.

But I'd say the way we invest into ASX shares, I'd say it's probably 80% focused on the income they can produce, which can offset the lower income you get from overseas shares and other parts of the portfolio.

I think it's appropriate for everyone, but it's probably more about the balance.

So if you're younger and you don't need to draw an income from your portfolio, then you'd probably be more interested in making sure that compounds or even reinvesting the dividends or investing into companies, a CSL versus a Telstra where one pays nothing in dividend but can constantly reinvest in itself.

So I think you'd probably just tilt more towards those companies that are growing

versus the ones that are paying out all their profits.

Yeah, and you still want companies that are paying dividends to be reinvesting because essentially if they're not reinvesting themselves, they won't go anywhere, which is the biggest challenge.

That's why your payout ratios is probably something you've discussed on here as well.

Essentially, the amount of dividend that they're paying out as a portion of their profit.

What's left over for the company to use afterwards and how much has been reinvested?

Showing 21–40 of 386 · page 2 of 20