The recent company reporting season provided an insight into the financial impact of COVID-19 on the economy and for investors.
Only 75% of ASX 200 companies reported a net profit in the year to June. Full-year earnings were down 38% on aggregate, while dividends were down 36%.
53% of companies either cut or didn’t pay a dividend, a move that will affect investors who depend on dividend income from shares.
The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.
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Disclosure: Peter Small is a Representative of Fluid Financial Planning Pty Ltd ABN 85140515680, holder of Australian Financial Services Licence number: 389518, Suite 4a, Level 1, 5 Ridge Street, North Sydney NSW 2060 General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.