Global High Yield Equities - Bond Like Income Opportunities
by Kirill Pyshkin, Fund Manager Aviva Irl High Yield Equity Fund
 |
Click here to download Kirill Pyskin's views on why High Yield stocks are so attractive now..
Key points:
- Equity funds are well-placed to outperform bonds given that bond yields are so low and global equity valuations look attractive.
- Dividend yields in many developed equity markets exceed government bond yields for the first time in many decades, showing just how much risk perceptions have changed in recent years.
- Dividends are usually a key driver of total returns in equity markets around the world. For instance, over a third of UK equity returns have flowed from dividend payments since 1998.
- Dividend growth is key - our research shows that the top fifth, or quintile, of global stocks that grew their dividends most returned more than any other quintile over the last ten years.
- Companies with strong income potential can be found outside the large-cap telecoms, pharmaceuticals and oil stocks often associated with high yield equity funds.
- Global high yield equities can marry the best characteristics of equities and bonds to create a fund of relatively few stocks capable of producing attractive and growing income, significant capital appreciation, and relatively low levels of risk and volatility.
|
|
