In the latest Oliver’s Insights, Dr Shane Oliver looks at five great charts on investing for income.
The key points are as follows:
- At its core, successful investing is simple, but we have a knack for making it look complex. This applies as much to investing for income as it does to broad-based investing.
- These five great charts help illuminate key aspects of investing in income (or cash flow): there are lots of alternatives to bank deposits for income; the gap between yields on different assets provides a guide to relative value; shares can provide stronger growth in income with less volatility than bank deposits; a high and sustainable income yield from an investment provides security during volatile times; and yield provides a guide to future returns.