Financial Security Practitioners

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Oh! The Markets

By Wellinvest

“More than $130 billion wiped off ASX as coronavirus bloodbath continues”

“ASX faces worst week since GFC”

Oh dear, here we go again - the end of the World is nigh!

BUT ISN'T IT NICE TO KNOW that if your investments (including your Superannuation or Pension Fund) have been wisely structured to generate INCOME (from share dividends), rather than gambling on Capital Gains, then your income is not under threat?


It’s as Simple as This...


Dividends are paid PER SHARE.


They are NOT paid according to the SHARE PRICE.


So, markets rise, markets fall. But the number of shares you own stays the same.


Falling - or rising - share-prices doesn’t change the number of shares you (or your Super or Pension fund, on your behalf) owns.


Worth Repeating...


Dividends are paid PER SHARE.


Whilst it may transpire to be the case that some companies may have their profits trimmed and consequently have less to pay to their shareholders, others may actually benefit from the downturn. For example, building materials companies are booming following the devastation of the recent bushfires and floods, as rebuilding gets underway. Commercial opportunities abound in every situation.


It is not the purpose of this brief article to discuss the coronavirus outbreak, but simply to send a note of calm and caution.


Doubtless, markets will recover anyway, as they inevitably do. It’s in the nature of our advanced economy, and those of the developed World.


In the meantime, as said, your Investment Income remains safe and secure.


Best Wishes,


Your Team at Wellings & Associates

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