Alternatives and Liquidity – A Dividend Investor’s Take

A conceptual illustration showing the contrast between liquidity and illiquidity. On the left, bright golden coins and banknotes cascade down like a stream, while on the right a dark metal safe door is wrapped in chains and secured with a large padlock. The warm glow of the coins contrasts sharply with the cool, shadowy tones of the locked safe.

As an Australian dividend investor, I’ve always built my portfolio around one simple principle: cash flow is king. Dividends are predictable, liquid, and (thanks to franking credits) tax-efficient. But in recent years, I’ve noticed more investors being lured toward the shiny promise of “alternatives” — private equity, hedge funds, infrastructure partnerships, even agriculture and timber. …

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