array(1) { [0]=> &object(stdClass)#6187 (52) { ["id"]=> string(5) "16922" ["title"]=> string(122) "Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes? " ["alias"]=> string(118) "are-you-being-priced-out-of-the-market-have-you-got-the-tuesday-blues-and-are-you-ready-for-the-upcoming-super-changes" ["introtext"]=> string(242) "

On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss whether owner-occupiers should withdraw from the property market, the effects of Tuesday blues on the ASX, upcoming super changes and more.

" ["fulltext"]=> string(936) "

Steve Waters, director of Right Property Group, chats about current property price movements and whether owner-occupiers are being priced out of the market.

RMIT’s senior lecturer of finance, Dr Angel Zhong, delves into the Tuesday blues effect and the implications for Aussie investors.

And lastly, tax and super guru Timothy Munro talks about upcoming super changes and shares his handy checklist ahead of tax time.

Have a question for our experts? Get in touch at [email protected] and you might get featured on the next episode.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2021-06-15 06:25:29" ["created_by"]=> string(4) "2404" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2021-06-15 08:26:44" ["modified_by"]=> string(4) "2404" ["modified_by_name"]=> string(12) "Robyn Tongol" ["publish_up"]=> string(19) "2021-06-15 08:26:44" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(240) "{"image_intro":"images\/podcasts\/060421_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(855) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","send":"0","test":"0","comments":"1","readingDiff":"3","schema_active":"0","schema_name":"","schema_description":"","schema_thumbnailUrl":"","schema_uploadDate":"","schema_duration":"","schema_contentUrl":"","schema_embedUrl":"","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(54) "priced, market, tuesday, blues, ready, upcoming, super" ["metadesc"]=> string(200) "On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss whether owner-occupiers should withdraw from the property market, the effects of Tuesday blues on the ASX" ["access"]=> string(1) "1" ["hits"]=> string(2) "33" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(3) "936" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(12) "Robyn Tongol" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#6206 (3) { ["data":protected]=> object(stdClass)#5979 (95) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["menu-meta_description"]=> string(180) "Let us help you decide how you want to invest your money on. Learn the best strategies in investing and options like cryptocurrency, bonds, mutual funds, property and stock market." ["secure"]=> int(0) ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2021-06-15 08:26:44" ["slug"]=> string(124) "16922:are-you-being-priced-out-of-the-market-have-you-got-the-tuesday-blues-and-are-you-ready-for-the-upcoming-super-changes" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(137) "/resources/podcast/are-you-being-priced-out-of-the-market-have-you-got-the-tuesday-blues-and-are-you-ready-for-the-upcoming-super-changes" ["image"]=> string(65) "images/podcasts/060421_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

Are you being priced out of the market? Have you got the Tuesday blues? And are ...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

Dividends in Australian shares – is the COVID lockdown lifting?

By Andrew Zenonos

September 30 2020
Share

Invest

Dividends in Australian shares – is the COVID lockdown lifting?

By Andrew Zenonos
September 30 2020

What happened during reporting season? Andrew Zenonos asks.

Dividends in Australian shares – is the COVID lockdown lifting?

By Andrew Zenonos

September 30 2020
Share

What happened during reporting season? Andrew Zenonos asks.

In many ways, FY20 reporting season was one of the most closely watched in recent memory as investors attempted to understand the true impact of the COVID-19 pandemic on company fundamentals. Going into the end of the financial year, expectations for earnings had been slashed significantly due to the level of uncertainty that remained in the outlook for the economy. While there was stock level volatility and divergence (as always), reporting season for FY20 was largely better than expected though FY21 earnings expectations were downgraded; the ASX 300 returned 3.05 per cent for the month of August.

Although results were better than expected at the aggregate level, many companies did not give guidance for FY21 due to the uncertainty that still looms over the next 12 months in the economy. Companies may provide updates during AGMs in Q4; however, it is difficult to know if additional clarity will be available at that point in time.

There were some notable themes at the sector level. The consumer discretionary sector was a notable space for earnings upgrades as the “work from home” theme drove strong increases in sales. JB Hi-Fi and Harvey Norman were beneficiaries of this, outperforming by 9.5 per cent and 15.8 per cent, respectively, through August. While bank results were mostly in line with expectations, FY21 earnings for the sector was downgraded on the back of net interest margin pressures, as well as uncertainty for the economy once fiscal stimulus has ended or is tapered significantly. Resources companies remain resilient and reported earnings upgrades in aggregate; iron ore miners remain well bid as the commodity market dynamics remain favourable.

What happened to dividend expectations?

Due to the level of uncertainty that remains for the coming 12 months and the hesitation from companies to give guidance, it is not surprising that we did not see much in terms of news flow around dividends relative to expectations. At the end of July, APRA eased restrictions around paying dividends for banks however payout ratios for authorised deposit-taking institutions (ADIs) will be maintained below 50 per cent for this year. While this is a small positive, the outlook for bank dividends remains significantly below what investors have come to expect. ANZ, CBA and NAB announced dividends; however, Westpac confirmed that an interim dividend will not be paid. Once factoring in reporting season, approximately 35 per cent of companies in the ASX 200 have deferred, cancelled, suspended or declared no final dividend. The outlook for dividends at the aggregate market level remains subdued and shrouded in uncertainty, i.e. not dissimilar to the environment before reporting season. In saying that, however, alongside the thematic that earnings were better than feared, it appears that the outlook for dividends has potentially seen a bottom – at least for now.

The expected dividend yield for the Australian market, which has historically been viewed as a high dividend yield market, is now around 3 per cent. This is significantly lower than the 20-year average dividend yield of 4.3 per cent.

How did our ETFs perform?

Through August, both our Russell Investments High Dividend Australian Shares ETF (RDV) and our Russell Investments Responsible Investment ETF (RARI) outperformed relative to the broad market.

RDV benefitted from exposure to retail and the “work from home” theme noted above via overweight positions in Harvey Norman and JB Hi-Fi. Exposure to a number of companies that reported “better than feared results also added value, particularly in tourism-related parts of the market. Star Entertainment and Flight Centre outperformed the broad market on the back of their results.

RARI also benefitted from exposure to strong retail names such as Super Retail group and Premier Investments, as well as “better than feared” results in Qantas and Stockland Group. Rio Tinto is excluded from RARI’s holdings due to its involvement in, and risk attributable to, mining activities. This benefited performance over the month of August, as controversy related to the company’s blasting of indigenous sites weighed on the share price. This caused significant shareholder backlash, and exposed some questionable, if not poor, governance practices within the company. Subsequently, the CEO and a number of senior executives have departed. We continue to see strong demand for ESG-related products and growing concern around active ownership and governance.

Andrew Zenonos is an associate portfolio manager, equity, at Russell Investments.

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Investment insights

How Aussies can invest like Warren Buffett

Arguably the most successful investor of the modern age, Warren Buffett is still the chairman and CEO of Berkshire Hathaway at 90 years old, and currently has a net worth of over $100 billion, writes ...Read more

Investment insights

Pahari leaves AMP as it pursues demerger

In yet another twist, AMP has announced its intentions to pursue a demerger of its private markets business, a move that has seen it kill off its takeover negotiations with Ares Management and Boe Pah...Read more

Investment insights

Business warned on COVID vaccine policy backlash

Businesses that pressure staff into getting a COVID-19 vaccine are being warned they could face discrimination, harassment, bullying and employment abuse claims, according to an industry expert. ...Read more

Investment insights

5-step guide to teaching kids about money

It’s never too early to start teaching kids about money and how to manage it. With the added challenges associated with COVID, it’s never been more important either! ...Read more

Investment insights

Why ethical investing is at a tipping point

Best-selling author Malcolm Gladwell said it best: “Look at the world around you. It may seem like an immovable, implacable place. It is not. With the slightest push – in just the right place – ...Read more

Investment insights

Ares withdraws from AMP bid as wealth manager’s financial results spell trouble

The bad news keeps rolling in for AMP, with the wealth manager reporting a significant drop in profit as its US bidder, Ares Management Corp, announces that it is backing out. ...Read more

Investment insights

‘RBA not responsible for asset prices’, governor says

RBA governor Philip Lowe has said that the Reserve Bank is not responsible for targeting asset prices, after questions were raised about the creation of raging bull markets against the backdrop of l...Read more

Investment insights

Retailers report strong HY21, with Super Retail set to refund JobKeeper

Certain Australian retailers are flourishing despite the government-mandated temporary store closures in 2020, with JB Hi-Fi reporting good sales growth and Super Retail Group pledging to hand back $1...Read more