Equity yield as a value proposition

Initiating dividends by big growth companies is seen as an important signal for the next leg higher in equities. With the expectation of retirees moving out of cash and seeking riskier sources of yield, equity income becomes attractive, especially if interest rates start to decline. Equity income has historically performed well during periods of inflation. Although it may take time for the market to fully recognize this, financials are considered a good source of inflation-protected yield. Energy, with its disciplined production and focus on cash return, also offers a healthy yield and is seen as a potential sector for net zero goals.