Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

clock • 5 min read

Darius McDermott asks whether a 5% income yield is still realistic in the current environment...

After the income famine that investors experienced in the aftermath of the financial crisis, the past few years have seen a feast. Bonds, equities and alternatives have all been a source of high and sustainable yields. But with the recent strength of stock markets and narrowing credit spreads, income has been squeezed again. Is a 5% income yield still realistic in the current environment? It is increasingly difficult to get this level of income from the stock market. A stronger performance from many of the world's higher income markets – the UK, Latin America – has left yields lookin...

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