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ING IM: Importance of dividend yield to grow

07 October 2011

As it launches its Emerging Market High Dividend Fund, ING IM says the importance of dividend yield will strengthen in today's low growth, low return environment

Read more: ING IM Emerging Market High Dividend Fund Nicolas Simar

The importance of dividend yield will strengthen in a low growth, low return environment, according to Nicolas Simar, head of global high dividends at ING Investment Management (ING IM).

In an environment of low growth in developed markets, low yields on government bonds, and widespread market volatility, Simar says high dividend yield investment funds can be a sustainable and low risk alternative.

At the moment companies are enjoying sound balance sheets and large cash positions Currently, dividend yields exceed the yield on government bonds, while for certain sectors in Europe, the average yield on corporate bonds...