Australia remains unattractive to investors seeking growth but should appear very attractive to those looking for income. As one would expect in a low growth market, the expected dividend yield is relatively high.
The bottom-up forecasts for June-2016 imply a dividend yieldThe ASX of 5.1%. This is more than double yields in the US and Japan. It is also more than double the yield on offer on Aussie cash and government bonds. We continue to expect more to flow out of these two assets into Aussie equities.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
