Undoubtedly, the COVID-19 pandemic sparked a dividend drought for investors in 2020, with several companies either slashing or suspending dividends to bolster balance sheets. Riding against the tide, some ASX-listed players managed to reward shareholders with dividend payouts, allowing them to find solace in market volatility. With cash rates prevailing at record low levels in Australia, these dividend-paying stocks presented some unique opportunities for investors to build wealth in the capital market. Key Tips for Investors
While these companies carry high dividend yields, investors also need to consider other factors to make rational investment decisions, such as robust fundamentals, sound balance sheets, and positive operating cash flows.
* Investors should look beyond dividend yields while choosing a dividend-paying stock as sometimes a high dividend-yield could be because of a sharp stock price dip.
* To prevent losses, investors can explore stocks with good and regular dividend-paying history.