It's been a tough run for local investors with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) currently enduring its sixth consecutive session in the red. It's down 1.2%, driven, at least in part, by a weak overseas lead while tomorrow's interest rate decision could also be weighing on investor sentiment.
Each of Australia's big four banks are trading deep in the red and one of the primary reasons behind today's share market fall.
Westpac Banking Corp (ASX: WBC) led the charge, losing 2% following the release of its full-year earnings results, while National Australia Bank Ltd. (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) all fell between 1.1% and 1.9%.
Woolworths Limited (ASX: WOW) and Wesfarmers Ltd (ASX: WES) – owner of Coles – also showed further weakness, as did the miners. The supermarket giants fell 1.3% and 1.4% respectively while BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) dropped 0.7% and 0.5% respectively, despite a 0.4% increase in the iron ore price, according to the Metal Bulletin.
Although it is discouraging to see the ASX 200 fall for six straight sessions to sit below the 5200 point mark, it does create a number of opportunities for prospective investors – especially those focused on dividend yields.
The Reserve Bank of Australia will meet tomorrow and will at least consider reducing the cash rate even further. If it doesn't tomorrow, then a rate cut in the near future is considered almost a sure-thing by the financial markets, making high-yield dividend stocks all the more appealing. Indeed, as share prices fall, dividend yields increase (all else being equal) making now a great time to start loading up.
