TOL - 17th Jun, 2023
The dividend doctor gives his prescription for investing in 2023
Plus, he names the dividend darlings that no longer deserve the crown!
Dividend-paying equities have long formed the backbone of retirees’ portfolios. The historic stalwarts of these portfolios are well known. BHP, Telstra, and Commonwealth Bank, to name a few.
You might be mistaken for thinking that equity income portfolios are therefore set and forget strategies, made up of a limited number of dividend darlings that will pay out into perpetuity.
But you’d be wrong on both accounts, according to today’s guest.
Dr Don Hamson is the founder and managing director of Plato Investment Management. Plato manages $11 billion in assets across three funds – an Aussie equities income fund, a global equities income fund, and a long/short global alpha fund.
Before that, he was responsible for over $10 billion in active and enhanced equity investments at State Street Global Advisors.
In today’s interview, Don explains why dividend-paying equities are still an income investor's best bet and outlines what makes a dividend sustainable. He also shares how investors can identify dividend traps, and which sectors and stocks have the brightest dividend outlook.
Plus, Don names the dividend darlings that no longer deserve the title!
Note: This episode was recorded on June 12, 2023.
Timestamps
- 0:00 - START
- 1:45 - Dividends hold up amid inflation and rate hikes
- 4:15 - Dividends remain the income backbone
- 6:00 - The importance of franking credits
- 9:17 - Dividends vs the bond market
- 10:47 - Capital vs income
- 11:45 - Drawdown and sequencing risks
- 14:13 - Finding dividend growers
- 16:30 - Dividend traps
- 24:03 - Buying cheap stocks in hope of a dividend
- 26:00 - Red flags
- 31:40 - What makes a dividend "sustainable"?
- 38:00 - The best (and worst) looking sectors
- 41:23 - Invest with a short time horizon
- 43:00 - No free lunch for less than 20 stocks
- 50:30 - It's not all doom and gloom
- 58:00 - Don's bottom drawer investment
Managed Fund
Plato Australian Shares Income Fund
Australian Shares
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Managed Fund
Plato Global Alpha Fund
Global Shares
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LIC
Plato Income Maximiser
Australian Shares
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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over 150 episodes published - you can access all content on Livewire Markets, Spotify and Apple Podcasts.
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3 topics
5 stocks mentioned
3 funds mentioned
1 contributor mentioned
Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
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