SHIELD - Sustainable High Yield | Dividend yield premium to bond yield will drive yield chase | We maintain our long term positive view while expecting the...

SHIELD - Sustainable High Yield | Dividend yield premium to bond yield will drive yield chase | We maintain our long term positive view while expecting the market to recover from recent commodity price drops and domestic sentiment falls. Equities will continue to benefit from major global economies maintaining low rates of interest for longer as countries struggle with growth and unemployment. Despite the low growth outlook, we expect increasing demand for Australian dividend yield in a global environment of older demographic looking for sustainable income streams. The domestic baby boomers will be forced to invest in equities to maintain their income requirements due to the low interest rates and rising cost environment. SHIELD Top 20 picks are: large cap - CBA, WBC, BHP, ANZ, NAB and TLS; mid cap - PPT and MYR; small cap - IMF, NST, RCR, HIL, WEB, PTM, MOC and GDI; and micro cap - FRI, HFA, DDR and NCK. (VIEW LINK)