it is reliant on receiving dividends from the companies it...

it is reliant on receiving dividends from the companies it invests in as it looks for companies that are cost attractive that pay a dividend and stay in it long enough to get the Dividend and franking credits where available. In past also looked at companies with attractive share buybacks. PL8 need overall companies paying dividends to increase their payouts so the money flows through the fund. The aim was to provide consistent dividends on a monthly basis month in month out. Going for higher payout rates ruins that philosophy if the overall market isn't paying out at higher rates. I think a conservative approach will be taken as there are rocky roads ahead esspecially for a few of the larger dividend paying stocks on the Aussie market that make up a large portion of dividend paying stocks ie. CBA, BHP, RIO, FMG.... They are all coming under pressure and wont be able to sustain their record payouts in recent periods moving forward the way the market is pointing at the moment.