Investors with bank deposits need to get used to a low interest-rate environment for the foreseeable future or look at alternative options, Craigs Investment Partners broker Chris Timms says.
Among the options were reducing their spending or eating into their capital to retain their lifestyle or considering buying shares.
"There may be a bit more risk, but you will get better returns. We can paint a pretty interesting picture on some of the companies. Auckland International Airport has been resilient. Vector, Ryman Healthcare and Port of Tauranga have all had solid share-price movements."
The share prices had moved up or down but with very small movements, he said. The defensive stocks had strong cash flows to provide dividends to investors.
On present share prices, Auckland Airport provided a dividend yield of 5.3%, Vector 8%, TrustPower 6.7% and Sky Television 4.9%.
Mr Timms said it was important for investors to look at the income shares provided rather than the share-price movement of the day.
"We need to take a longer-term view. Share-price movement is great but getting income, regardless of what the share price is doing, is ideal," he said.
Mr Timms was responding to the news that, as expected, Reserve Bank governor Alan Bollard yesterday left the official cash rate unchanged at 2.5% and indicated it would be late next year before any rise in the OCR would occur.
"Global developments are having some negative impact on New Zealand, though to date it has been limited. Business confidence has declined and investment spending is likely to remain weak for some time.
"In addition, tightness in international markets means funding costs for New Zealand banks will increase to some degree over the coming year."
Given the unusual degree of uncertainty around global conditions and the moderate pace of domestic demand, it remained prudent to keep the OCR at 2.5%, Dr Bollard said.
ASB chief economist Nick Tuffley said there were few surprises in the central bank's monetary policy statement.
The key message was the bank would remain on hold for a considerable time until offshore risks - both financial and economic - had receded substantially.
The ASB recently changed its expectation of the first rise in the OCR to happen in December 2012, he said.
The forecast 90-day bank bill peak of 4% remained consistent with a low OCR peak.
"We are comfortable with our view the OCR will eventually peak at 4% late in 2013."
Rate cuts still appeared unlikely and would only be a prospect under extreme circumstances, Mr Tuffley said.
There was no material market reaction after Dr Bollard's statement.
