Art of Investing the Money on Best ASX Dividend Stocks from Australian Stock Market

Author: Richard Gere

This Weekend was quite dramatic for Australian Stock Market and Australian Economy as Australian PM back their support on lifting the foreign ownership restrictions on Qantas as they wants to be able to compete with Virgin on a level. Also, PM denies the possibilities to give Toyota the extra government assistance in form of giving them extra money to stay in Australia as carmaker flag out the issue of unprecedented pressure. Australian Dollar has been slumped down to 1.6% in comparison to US Dollar. Surprisingly Unemployment rate is getting big and bigger in Australia.

Australian Stock Exchange ASX is full of such stock where you can either long term returns or you can have short term returns in form of dividends. Usually Midcap stocks will be able to provide you good dividend returns on regular time intervals. Currently S&P/ASX 250 Market is running quite good on 5,098 points. It’s up by 35.90 stock points which is almost 0.81%. All this is after considering the fact that all the blue chip Australian dividend stocks in stock market is suffering week.

Being an investor, I would like to share my experience with you all and that is I personally think that if you need best dividend growth, then you should go for small cap shares considering the fact that they contains enough opportunities to grow their business. In spite of that if you are looking for just moderate dividend yield returns on your investment with the enough amount of reliability consider the large cap stocks. Though not all large cap stocks or you may say blue chip stocks will be giving you dividend returns on your investment as some might be giving you long terms profits through hike in stock price. Whenever you will be selling your Australian Stocks you will be getting a considerable amount of profit. It’s a primary thumb rule of stock market “Buy a Stock on Low and Sell it on High after when it goes up”.

Some large cap stocks can provide you dividends as well as it totally depends on the organization whether it can give you dividends or not. Such stocks are known as ASX Dividend Stocks. The reason why large cap stocks provides dividend to shareholder is because sometimes there are limits on business growth by local government imposed on blue chip stocks and this is done to protect the government subsidiaries from being lost or being overtaken by such blue chip stocks. So When such blue chip or large cap stocks earns great profit which happen quite often, they decided to give some portion of their profit in terms of dividends.