Playing the field for yield in 2023

This monthly commentary gives a round-up of global markets and trends.

In this edition:

• An abrupt shift in monetary policy in response to rising inflation has seen bond and equity markets fall sharply in 2022
• Investors are likely to remain defensively positioned in 2023, seeking out dividend-paying companies with reliable cashflows
• Aggregate dividend yields are attractive relative to history, with the highest yields found in the energy sector but also in consumer staples and utilities
• The UK stock market pays the highest dividends of all major developed markets, while the US is the lowest. Opportunities may also emerge in government bonds as the Federal Reserve slows rate rises