Put it this way.....would you put money into a bank account at 1% when you could put it into an account at 4%?
And the reason for working out the dividends as a % is that shares are worth different amounts. A 5% dividend yield on a $5 share is a lot different to a 5% yield on a $50 share. And then you need to know what the Franking credits are. If a company gives a 30% Franking credit then your dividends are worth more as the company has already paid tax on those dividends and if your tax rate is lower than the 30% tax paid then you can claim it back.
I have some shares that were paying reasonable dividends with 30% franking credits. They have now discontinued the Franking credits so I am effectively receiving 30% less....I think they may go if the credits are not reinstated when the next dividends are declared.
And look for top quality stocks that will hold their value...most banks are a good investment.
I believe the Stock exchange now has on line tutorials...it may pay you to have a look. I was lucky enough to go to a course run by the ASX many years ago with an old boss. At the time I had not money and was not all that interested but something must have stuck as I am not a complete novice now.
