For those living from their personal investment wealth, record
low interest rates are forcing investors to make decisions
impacting lifestyles by taking risks they otherwise wouldn't,
facing returns which are being eroded by higher prices of goods
(inflation) or leading a lower standard of living. This is a global
phenomenon.
At the time of preparing this report, the Reserve Bank of
Australia set the official cash rate at 2.5% while 6-12 month term
deposits are paying approximately 3.6%. These rates are less than
compelling and put pressure on investors to seek other avenues of
return.
Taking this into consideration, the chase for income has only
intensified in the last couple of years, with highdividend stocks
having emerged as the chief focus for many investors.
