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The power of dividends

In Brief: The power of dividends

Friday, 02 January 2026

How can they assist investors in expanding their portfolios?

Dividends have long been a vital part of the investment process. For many investors, dividends help minimise portfolio volatility, especially during uncertain markets, and they can indicate management’s confidence in a company’s financial health.

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Please be aware these articles are for general information purposes only and correct at time of printing. We will not accept responsibility for any errors made or actions taken by any readers that have acted on the information contained. Answers given are for guidance only and specific advice should be taken before acting on any of the suggestions made. All information is based on our understanding of current tax practices, which are subject to change. Always remember when investing, past performance is not necessarily a guide to future performance and the value of some investment units can fall as well as rise.