Join for free
Log in
Home / SMSFs / SMSF investing / Do SMSFs rely too heavily on bank shares for dividend income?

Do SMSFs rely too heavily on bank shares for dividend income?

Barbara DruryBarbara Drury

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.

This is a members-only guide – but unlock 100+ guides now with a free account

Create a free SuperGuide account today to access SMSF strategies, checklists and compliance tips – all from independent experts.

Join now

About the author

Barbara Drury
Barbara Drury
Barbara is a financial journalist and author with over 30 years’ experience in Australia and the UK. She is a contributor to The Sydney Morning Herald and The Age Money section, and has worked for the Australian Financial Review and The Australian. Barbara is the author of Alan Kohler’s Eureka Report Guide to Personal Investing, Sorting Out Your Finances for Dummies and Personal Finance for Dummies and co-author of Investing for Dummies with James Kirby.
Related topics,

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

© Copyright SuperGuide 2008-25. Copyright for this guide belongs to SuperGuide Pty Ltd, and cannot be reproduced without express and specific consent. Learn more

Leave a Reply