Lighthouse Capital director and Certified Financial Planner Julia Schortinghuis says Australian equities are an important source of income in portfolios, particularly now when interest rates globally are low.
“Trying to generate sufficient income from bonds and traditional fixed income sources is very difficult. So Australian shares are more important than ever as part of the solution for retirees to be able to generate reliable income streams.”
Australia pays the highest average dividends among the largest economies, yielding 4.2% at the end of June 2017, according to Siblis Research. Italy, Portugal, Spain and UK pay about 3.5%.
Investors in late accumulation and retirement phase rely on regular income from their investments, Ausbil portfolio manager Michael Price says.
Read the full feature here