3 investors nominate their favourite income asset pick for the next 5 years

With peak rates come peak income opportunity - for term deposit holders that is. If the consensus is right that the next move for interest rates will be a cut (rather than another hike), then the average term deposit rate of 4.6% is likely going to be as good as it gets. 

Add to that inflation as well as the fact you are locked out of other opportunities once you are in and parking your cash in a TD suddenly doesn't cut the mustard. Especially if you tend to take a longer-term view of markets. 

But if you are stuck in cash and don't know where to put it to work, we have some solutions for you! Ahead of the next edition of Signal or Noise, we asked our panel to nominate some of their favourite income-paying assets. Plus, we also discuss whether the ASX 200's below-average dividend yield is a cause for concern - or a reason to lean into individual stock-picking opportunities. 

Joining yours truly for the Income Investing edition of Signal or Noise are:

• Michael Price, Portfolio Manager for the Ausbil Active Dividend Income - Wholesale Fund
• Amy Xie Patrick, Head of Income Strategies at Pendal 
• Shane Oliver, Head of Investment Strategy and Chief Economist at AMP

Note: This episode was taped on Wednesday 5 June 2024. The full episode will be released on Tuesday 11 June 2024.

Topics discussed:

• Is the ASX 200's falling dividend yield a cause for concern?
• The Australian 3-year bond yield continues to climb
• A top term deposit still pays over 5% even if the next move for rates is down
• What do you think will be the best income-paying asset over the next 5 years and why?