Last week, during Part 1/2 of the Rask LIVE series covering 7 passive income ASX shares, I offered a 6-point checklist to apply to any dividend stock.
You might remember that I also said, according to Credit Suisse research, of all stock markets in the world, Australia’s is the second-best performer since the year 1900! It returned 6.7% per year through 2022.
What I didn’t tell you were these two things:
- Nearly half the return you get from ASX shares is typically expected to come from dividends. The lesson: don’t ignore dividends!
- We’re going live, again, for part 2 of 2 — tonight at 6pm. The LIVE community voted for it, so we’re coming back tonight!
Are term deposits a good source of income?
When you think about it, an ING term deposit (no affiliation) is currently promising a 5% return for 12 months.
It sounds wonderful. And it is. Especially for retirees. And especially after a few years of term deposits being well under 2.5% interest.
However, inflation is still running high (6%). And while a term deposit is great for cash savings (e.g. ’emergency funds’), they help keep portfolio risk low and offer predictable income, they’re not perfect.
Nor do I think term deposits or savings accounts should be used for the entirety of a portfolio. Because, what happens when the term deposit matures?
Or if interest rates go higher?
In my book, blending diversified and long-term share and bond ETFs with cash is the perfect recipe for long-term wealth creation — and protection. Whether you’re in retirement, or gunning for it.
As I discussed last week, I love ETFs that pay dividends and franking credits. ETFs like VAS, A200, VHY, IOZ and MVW can offer franked dividends and long-term growth.
But from surveys of the Rask community in times gone by, I know as much as 70% of the Rask community also want to buy individual shares alongside their ETFs.
Tonight’s session is for all of us who are looking to buy some individual shares for passive income.
To repeat, last week we developed a dividend checklist for share investors. Tonight, we’ll be applying it to the following companies:
- Macquarie Group Ltd (ASX: MQG) – the company with the ‘silver donut’ logo, otherwise known for being Australia’s largest investment bank.
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – one of my favourite dividend stocks on the entire ASX.
- Lovisa Holdings Ltd (ASX: LOV) – the fast-growing retail company that’s breaking the ecommerce rules.
- Cochlear Limited (ASX: COH) – the world leader in implantable hearing aids.
- Dicker Data Ltd (ASX: DDR) – Australia’s largest IT distributor that won’t break.
All of these companies do something different. They have different growth prospects. Different CEOs and founders. And different ways of generating dividends…
But when combined with ETFs, they could become a wicked cocktail of dividend income.
That’s why we’ll be researching each company tonight at 6pm.
Of course, while we do that, you can ask me your questions about ETFs, business, property… whatever!
7 retirement-ready dividend stocks (Part 2/2) – Watch LIVE at 6pm
All you have to do is arrive at this YouTube link at 6 pm.
As always, we’ll be going live for Rask LIVE, brought to you by Selfwealth.
The stream will kick off shortly after 6 pm, Australian eastern time.
See you soon!
Chief Investment Officer of Rask Invest
Host of Rask LIVE