Chart: Equity versus bond yields at record highs

Chart: Equity versus bond yields at record highs. The quest for yield has been a resounding theme for investment markets. The chart attached from Paragon Funds Management gives some clear indication as to why many are expecting this theme to dominate again in 2015. While the performance of most defensive dividend stocks in Australia has been strong, it is worth remembering that the performance of bonds has been stronger. The below chart shows that the dividend of the Australian market relative to that available from government bonds (considered the risk free asset) is at decade highs.