If you had to put your money in just one place during the past five years, you could have done a lot worse than investing it with a big, safe company paying a big, safe dividend.
And that's exactly what a lot of Australian investors have done, seeking out hearty dividend yields from the big four banks, Telstra and maybe the odd property trust or insurer as well.
For the most part, that's meant a steady tax-free income coupled with rising share prices.
Just look at the Commonwealth Bank, which is up close to 60 per cent since early 2010, compared to an eight per cent gain for the All Ordinaries, without including dividends.
But does the future hold more of the same?
Mercer chief investment strategist Dave Stuart, is one who is cautious on the outlook for high-yield stocks.
"We do feel that at some point this chase for yield has to stop and so we would be a little wary about chasing performance in that area," he said.
"Obviously, if you have an need for income it's an appropriate area for you to invest but I wouldn't extrapolate past performance from that area and expect it will continue indefinitely."
While the annual Mercer Investment Survey has shown income-focused managed funds have outperformed their peers during the past five years, Mr Stuart said that could change once interest rates start to rise.
Low interest rates have been one of the key factors driving investors towards good quality income paying stocks: the big four banks currently boast dividend yields of around five per cent or more. Try getting that from a saving account or term deposit at the moment.
So when the Reserve Bank, and the US Federal Reserve for that matter, start to lift interest rates, some investors will probably take their money and bank it, which could hurt share prices.
"There is a danger that those (high yield) sectors may underperform when we finally move to a rising rate environment," Mr Stuart said.
But OptionsXpress market analyst Ben Le Brun doubts that'll happen any time soon.
He says many economists are still forecasting further interest rate cuts in Australia, which means it could be a while before bank deposits look anywhere near as attractive bank dividends.
"The turnaround will happen at this stage but it might be a bit to early to start forecasting it could happen in 2015," he said.
"Yield is still the best way to go, especially in the low interest rate environment where retirees are just looking for anything that pays an income."
WHO PAYS WHAT?
* Commonwealth Bank: 4.79pct
* Westpac: 5.55pct
* ANZ: 5.64pct
* NAB: 5.91pct
* Telstra: 4.83pct
* Woolworths: 4.59pct
* Wesfarmers: 4.48pct
* Stockland: 5.74pct
* IAG: 6.19pct
* Suncorp: 5.41pct
(Trailing annual dividend yields)
Source: IRESS
