One of the most common questions among Australian investors is "is it time to sell the banks?". Second most common - "is it time to sell Telstra?" The answers to those questions will vary from investor to investor, and is as much a product of an individual's situation as the stock specific factors.
However, one of the factors influencing investors is the dividend yield. In the interest of providing CMC customers with useful information, here are my estimates of current dividend yields, at today's prices:
Bear in mind the assumptions - dividends will rise by 3 % for ANZ, CBA and WBC, and stay flat for NAB and Telstra. Also, these are not directly comparable to interest rates, as share owners also have capital risk - share prices can go down and up.
Nonetheless, its easy to see why international investors dealing with interest rates close to zero, and who think the AUD may be near a low, find these dividend yields attractive.