borrow funds against your IP to invest in fully franked equities..

S
exactly (tho the lending curbs themselves aren't the issue so much as the state of the Sydney property market). But if you slice out resources, financials and retail... urghhh

There are plenty of good businesses on the ASX outside of those sectors, they are unlikely to be household names however so you need to DYOR and find them. If you are bearish on financials and resources then you either go direct stocks, equal weight ETF (which is an away tilt ) or active management avoiding those sectors. Ongoing research finds all kinds of viable business that I had never heard of doing things that people and business needs.

I will grant you that the diversity exhibited in the S&P just isn't here. However, there are always some opportunities in any market.

The stock market is no less diverse than the property market, perhaps more so.
Unless you are an index investor it's probably not helpful to think of it as a whole.
 
Both accumulation indices tell the story. Dividend imputation leads to far higher payout ratio in the form of franked dividends on the ASX compared to the S&P500. So look at total return as opposed to growth only. This is part of the reason, aside from the obvious that the bounce back has not been as strong when looking at growth indices.

I don't really have a dog in this argument, I hold direct stocks listed on ASX, NYSE, TSX, SIX and LSE. All have a place in the portfolio.

Do you really expect ASX coys to continue giving high dividends when their growth prospects are in question?
 
Do you really expect ASX coys to continue giving high dividends when their growth prospects are in question?

Your question does not go to the point I was making. But regardless, yes they will maintain higher payout ratio, note ratio than other markets due to dividend imputation. When growth is not achievable return of capital to shareholders in the form of dividends is sensible.
 
Actually the banks will require more capital so instead of distributing their profits they will retain these profits to beef up regulatory capital. As to the miners, their expansion plans are in tatters paying back capital to shareholders will not attract imputation because they will have little franking credits in their books to distribute.

People should be careful about investing because many tome they think they are Warren Buffett types of people when making these decisions when in fact they are not.
 
Actually the banks will require more capital so instead of distributing their profits they will retain these profits to beef up regulatory capital. As to the miners, their expansion plans are in tatters paying back capital to shareholders will not attract imputation because they will have little franking credits in their books to distribute.

People should be careful about investing because many tome they think they are Warren Buffett types of people when making these decisions when in fact they are not.

Obviously you are taking a negative macro view on Oz which is fair enough. I don't neccesarily share that but no problem with that - I am not particularly bullish either mind you. Banks reg capital requirements are not as onerous as you suggest and BHP is not short of franking credits.

I agree with you on your last point. A give away is making such considered remarks as "meh, international shares are waaay better" and following it up with generalisations and a pompous tone which I don't think is the idea behind the forum.
 
Well just what I was saying. Past results are no guarantee of future performance.

Beware the yield play.

http://www.smh.com.au/business/mark...dividends-tipped-to-fall-20150524-gh8esf.html

The Australian sharemarket could face an abrupt end to its yield-driven ascendancy as lacklustre earnings growth and rising debt combine to pressure dividend payments.

Over the past three years dividend darlings including Telstra and the big four banks have enjoyed sharp share price rises as investors hunt for stable returns amid historically low bond yields.

But Credit Suisse warns that payout ratios (the percentage of earnings paid out as dividends) are at 21-year "extreme highs", and the yield support behind some of Australia's biggest stocks could falter.
 
Well just what I was saying. Past results are no guarantee of future performance.

Beware the yield play.
Beware reading newspapers that contain mostly mindless drivel for the masses.

Indulge in some 2nd level thinking.... like this...

I agree, banks are probably loving the current environment. The last 2 years have been a race to the bottom for lender discounting. Lenders have been giving deeper and deeper discounts for fear of missing out and haven't been backing off. Then along come the regulators, giving them a reason to stop all at the same time. In any other environment they'd be accused of collusion.
 
Do you really expect ASX coys to continue giving high dividends when their growth prospects are in question?

Dividends are paid for a variety of reasons though, to repay profit to shareholders, to retain investors or to attract investors. Sometimes a sick company can have a high dividend

Remembering also, that some companies never pay dividends
 
Beware reading newspapers that contain mostly mindless drivel for the masses.

Indulge in some 2nd level thinking.... like this...

Did you read the article? It makes a lot of sense. Ignore at your own risk.

Future profits are dependent on new business volumes, as the old loans amortise. These minor margin adjustments mean little, if the NB is capped by regulators where will growth in profits come from? And with new regulatory capital being required there will be increased number of shares chasing a smaller dividend pool.
 
For div plays, some analysis is needed to get a feel for if the div paid is going to be sustainable. This will be dependent on outlook for the sector and the company's business.

some sectors can be cyclical like mining with their div following the cycle, so what looks like a good yielding stock today can get its div cut.

some banks have now started capital raisings, with more share issued div payour per share will drop and hence yield.
 
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I agree with you on your last point. A give away is making such considered remarks as "meh, international shares are waaay better" and following it up with generalisations and a pompous tone which I don't think is the idea behind the forum.

I am here to challenge ideas of the mainstream who have a limited domestic view.

The reality is that there are many big name international shares that have way greater potential for profit and dividend growth than the traditional ASX mindset people have in this tiny country have about yoeld and imputation handed down by the usual thinking of local brokers and media.
 
Fair enough. Dividend imputation does lead to a home bias, which can be further exacerbated by individual tax positions. In SMSF for example, imputation is particularly attractive.

My favourite companies are global consumer staples/discretionary and investment holding companies that compound internally (no divs ). Obviously it takes more than a passing interest to get into this stuff though, so I can understand why "typical" local investors are comfortable with the assumed safety of locals stocks they are familiar with and they beleive they understand. As for going beyond this, it will take a real interest which most people don't have, and that's understandable.
 
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