Dividend Wave Could Fuel ASX Rebound as Cash Piles Back Into the Market

A sharp rebound in the Australian sharemarket may not be driven by improving fundamentals alone.

It may be driven by cash.

Over the next two weeks, roughly $23 billion in dividends is set to hit investor accounts, creating a significant pool of capital that could be redeployed into equities. In a market that has just come through a volatile period triggered by geopolitical tensions and rising oil prices, that liquidity injection has the potential to act as a near-term catalyst.

The key question is simple. Will investors put that money back to work?

A. . .

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