Investment management firm Plato Investment Management is projecting the ASX 200 will deliver a gross yield of 6 per cent in 2023, including dividends and franking credits.
Plato managing director Don Hamson says the modelling indicates it will again be Australian equities that underpin income for investors, mainly self-funded retirees in 2023.
“Investors should certainly expect their fund managers to be able to generate significant additional income above the index level through the benefits of active stock selection and tax-effective portfolio management,” he said in a media release..
“I think the current environment is quite similar to 1994 when global interest rates went up, inflation spiked, and there were negative returns on bonds and equity, yet dividends kept rising.”