Now that the Reserve Bank of Australia (RBA) has begun to cut the official cash rate, debate about the impact on bank profits has intensified.
So, what does this mean for self-managed super fund (SMSF) investors who rely heavily on bank shares for their dividend income as well as capital growth?
To paraphrase Mark Twain, reports of the death of the banking sector have been greatly exaggerated. After a dividend ‘bloodbath’ during the COVID crisis, when major banks cut or suspended dividends, bank shares rebounded and dividends were restored.
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