In this new world, dividends are down - but they’re not out. While post Covid-19, dividends from Australian companies have been cut by 30% overall, dividend cuts are not evenly distributed across the board, and it is still possible to achieve 5% cash yields plus up to 2% franking credits from a well constructed Australian equities portfolio. This compares very favourably with other asset classes, and with cash rates that are expected to be around zero for the next two to three years. In a low return environment, the tax effectiveness of Australian shares, particularly for superannuation investors in both pension and accumulation mode, will be more important than ever. Historically, there have been varied ways to generate income from a portfolio of Australian shares but the Covid-19 pandemic has changed the ability of some traditional income stocks to generate income. The case for active management has never been stronger – avoiding dividend traps will be more important than ever. - Don Hamson, Plato Investment Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum