With interest rates expected to stay at these low levels for the foreseeable future, it’s likely dividend shares will remain in high demand.
Dividend shares provide investors with what is generally a reliable level of income, while also offering the potential for substantial capital gains.
Another significant benefit of owning dividend shares is the tax advantages of fully franked dividends, offering investors a reduction of the tax they pay, or the potential for a tax refund. Fully franked dividends are particularly popular with SMSFs, especially those in retirement phase.
Of course, as with any share market investment, there are risks. A portfolio of one company is extremely risky, as any one individual company can run into problems.