Higher dividends for investors: Russell Investments
The market has delivered a 9 per cent increase in dividends to investors this reporting season, according to data released by Russell Investments' high dividend and high value indexes.
In the period of lower growth forecasts and heightened volatility, companies are taking the prudent approach and returning capital to shareholders instead of reinvesting cash, according to Russell Investments portfolio manager, Scott Bennett.
Apart from the mining giants, Telstra and Westfield, the big four banking groups were found amongst top 10 holdings in Russell's high value and high dividend indexes.
Bennett added the company's high value index found value in resources, as financials lost their "cheap" appeal.
"In stock movements, this translates into buys of BHP and Rio and selling down the banks," he said.
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