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Income through market cycles

Markets can turn quickly, but the power of income endures. Making income a core part of your portfolio may help support returns and keep you progressing toward your financial goals through every market cycle.

Why income

  • 01

    Keep earning, even when markets don’t

    Regular income from bonds and dividends may add to your overall return, even when markets move around.

  • 02

    Turn small payouts into big progress

    Reinvesting income may turn regular payouts into meaningful long-term growth through compounding.

  • 03

    A buffer when markets get bumpy

    Quality income assets may help soften the impact of market swings, so your portfolio keeps moving forward.

What is income investing?

Income investing is an approach focused on generating regular income through assets such as bonds, dividend-paying equities, and multi-asset income strategies. Rather than relying solely on capital growth, income investing seeks returns through interest payments and dividends over time.

Income strategies can help investors:

• Support portfolio cash flow needs
• Diversify sources of return
• Help manage market volatility
• Complement growth allocations
• Build more resilient portfolios

Income opportunities can be found across:

• Government bonds
• Investment grade credit
• High yield bonds
• Dividend-paying equities
• Infrastructure and real assets

Why now for income investing

After years of low yields, changing market conditions have created new income opportunities across fixed income markets. This is particularly the case in Australia, where 10-year government bond yields are now some of the highest in the world.

At the same time, investors are increasingly looking to diversify beyond traditional cash holdings and concentrated income sources.

Income investing may help provide stability during periods of market volatility by generating regular income even when asset prices fluctuate. Bonds and dividend-paying equities may help smooth portfolio returns, reduce reliance on market timing, and support investors in staying invested through different market conditions.

10 year bond yields
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