Dividend-focused equity strategies are attracting fresh investor inflows as term deposit rates begin to soften, prompting income-seeking investors to look back toward franked yield.
Fund managers report renewed interest in banks, REITs and infrastructure stocks with reliable payout histories, a reversal from the growth-tilted flows of recent years.
“When cash was paying five percent, yield equities had to work hard to compete. That equation is shifting again,” one portfolio manager said.