Two ends of town telling different tales Despite being smacked by their bankers, it seems most small businesses stick with them. A tale of two cities, or at least two ends of the same town: the collective outlook for the Big End is rising profits and higher dividends while a significant percentage of the Small End is paying higher interest rates despite rates officially falling. Life might or might not be lonelier at the top, but it's certainly more rewarding. The small business story first. There are so many surveys designed to get a corporate name mentioned, everything from business confidence to whether Quade Copper should be in the Wallabies, that one should be a little sceptical of such media releases. Nevertheless, when a firm of banking and finance analysts reckon 43 per cent of small to medium enterprises have actually suffered an interest rate rise in the past six months, it's worth reporting. East and Partners claim a survey of 1,491 business with turnover of between $1 million and $20 million found 43 per cent reported an increase in the interest charged on their loans over the past six months and only one per cent reported that interest rates dropped, the rest experiencing no change despite the cash rate and home loan rates dropping to record lows. Yet despite being smacked by their bankers, it seems most small businesses are simply copping it - or their lenders have them in such a tight vice that they are unable to do anything about it. The same survey reported only 4.8 per cent of SMEs indicated they were definitely going to change banks with a further 14.6 per cent saying it was "highly probable." Nearly a third said they would definitely not be changing their transaction bank. Meanwhile, at the top of the scale, life is predicted to just keep getting better, according to RBS Morgans. A list of Australia's top 10 stocks by market cap found that on Friday's closing prices, they offered an average grossed-up dividend yield (including franking credits) for 2013 of 7.46 per cent. That average ranges from 4.8 per cent for Rio as the lowest to 9.34 per cent for NAB as the highest. That was on Friday - with the market down again yesterday, yields on the same dividends are a little higher. The RBS Morgans crew are optimists about the financial year ahead, estimating that the average gross dividend in 2014, still based on buying the shares on Friday, will rise to 7.76 per cent and then the world becomes a better place again in 2015 as the gross dividend yield climbs to 8.3 per cent. Forecasting of course is a dangerous game, with no guarantees provided by the brokers, but the track record of dividend payments by our top stocks tends to be one of steady growth, despite the occasional GFC. The attractive level of dividends, including franking credits, continues to soften the blows of market volatility. An average return of around 7 per cent in a low inflation, low interest rate environment is about all that major institutions generally hope to achieve. So, the Big End keeps kicking goals while the Small End is simply kicked. Even the big stocks can feel sorry after six weeks of correction, but to keep that in some perspective, at the start of the last week of this financial year, on Friday's close, the all ordinaries index was still up 14 per cent since June 30. After yesterday's effort, make that 12.6 per cent. Add on franked dividends for those concentrating on the yield sector, and the gross return is still 20 per cent or so. And some people say the stock market is a terrible place. Meanwhile gold in Australian dollars was down 12 per cent after 51 weeks of 2012-13, the Aussie dollar has lost 10 per cent and iron ore, again in Australian dollars, was off 4 per cent - all making equities look good.