Copyright brisbanetimes
For decades, Australia has boasted one of the highest yielding sharemarkets in the world. A favourable combination of mature companies turning earnings into dividends and franking credits from the imputation system have helped fund the lifestyles of millions of Australians who rely on regular income from their investment portfolio. For these Australians, particularly retirees, the regular arrival of dividend cheques is a key part of ensuring financial security. This income has funded the dreams and aspirations of Australians for generations, allowing people to renovate their house, provide for their child’s education, go travelling or just take life a little slower. However, in 2025, conditions are quite different. Australians who have relied on the income generated by some of the nation’s largest companies are now facing the reality of smaller dividends. The scale of the decline is stark. At a market level, total dividends paid from ASX 200 shares over the year to June 2023 came in at just over $95.5 billion. Fast-forward two years, and that figure had dropped to $83 billion.
