Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Collect 4.4% Dividends in the Safest Country on Earth

Stock-Markets / Austrailia May 06, 2014 - 12:29 PM GMT

By: DailyWealth

Stock-Markets

Australia could be near-debt-free by the end the decade.

It's nearly impossible to believe in our debt-fueled world. But it's true.

Last week, Bloomberg reported that Australia's national debt could "decline to just over 5% of GDP."


And Australia could sell assets and cut welfare spending to further reduce debt. This is from a country that already has the second-smallest debt burden among developed countries, according to Bloomberg.

In short, Australia is a safe place to put money to work. It is in great financial shape... and it is actively reducing debt – unlike the U.S., which continues to add trillions per year in new debt.

And importantly, we have an easy way to invest today... collecting a safe 4.4% yield in the process. Let me explain...

Money flows where it's treated best.

It's one of the oldest rules in finance. It's the simple idea that investment dollars tend to go where they have the best opportunity for returns, given the risk involved.

Today, your money is NOT treated best in the U.S. Instead, it's treated best in Australia.

Right now, you earn next-to-no interest on your U.S. dollars and euros in the bank. But you can earn nearly 2% in interest on your cash by simply holding Australian currency. That's unbelievable!

The same is true in the Australian stock market. Today, U.S. stocks pay a dividend yield of just 2%... a paltry sum compared to the 4.4% you can earn in Australian stocks.

So I expect Australia to thrive as money continues flowing into it. Plus as I said above, because of the country's low debt, it's a safe place to put money to work. The best – and easiest – way to take advantage is through the Australian stock market.

Take a look at the chart below. It shows the 20-year history of Australian stocks and their dividend yields. As you can see, today's dividends are near all-time highs (excluding the financial crisis)...


Over the last 20 years, Australian stocks paid an average dividend yield of 3.8%. But right now, the iShares MSCI Australia Index (EWA) pays a 4.4% dividend. EWA is a simple fund that tracks the Australian stock market.

That means you can buy these stocks for a 10%-plus discount, based on dividends. Not to mention that it's nearly impossible to lock in a safe 4.4% dividend anywhere else these days...

Money should continue to flow to where it's treated best... Over the next few years, money will be treated best in Australia. And with the country actively reducing its minimal debt load, the Australian stock market offers safety.

We have a great way to make the trade today with EWA.

Don't miss this opportunity to move cash into the safest country on earth... and earn a 4.4% yield in the process.

Good investing,

Brett Eversole

Editor's note: If you'd like more insight and actionable advice from Brett Eversole, consider a free subscription to DailyWealth. Sign up for DailyWealth here and receive a report on the five must-read books on investing. This report wills how you how all of the DailyWealth team's "must read" books, which will help you become a better investor right away. Click here to learn more.

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in