Look beyond the dividend heroes

Many other notable funds

The dividend hero and next generation hero lists published by the AIC are a great marketing tool for the investment companies industry and tend to generate a considerable amount of press attention, despite being a relatively simplistic yardstick (funds that have grown their dividend every year for at least 20 and ten years, respectively).

However, while increasing dividends is certainly a positive, it might not be the best indication of which funds to buy for income. Many of these funds have only made token increases in their dividends over the last few years. There are also a number of companies on the list who have not generated positive real returns over the long term. While that is certainly understandable in the market turmoil post pandemic, it becomes less so given historically low levels of inflation in the decade following the GFC. Home REIT nears loan covenant breach as rent collection faces further deterio...