In a terrible year for growth stocks and bonds, many investors have resorted to ASX dividend shares.
The idea is that decent income would make up for anaemic capital growth.
As for 2023, many experts are expecting the lag in the effects of this year's steep interest rises to catch up, slowing the economy down considerably.
That means, once again, some investors might like to take shelter with dividend stocks.
"The beauty of quality dividend-paying stocks is that they tend to perform well across the cycle," said Ausbil Active Dividend Income Fund portfolio manager Michael Price.
"In the coming year, there will still be potential to capture dividends from earnings that are less sensitive to lower growth and can pass on inflationary pressures to their customers."
There are also opportunities for elevated payout ratios, he added, and special dividends in lieu of off-market buybacks.
ASX dividends in resources have peaked
However, with conditions expected to be different to 2022, which are the ASX dividend shares that will be the most fruitful for 2023?
Price reckons investors will need to be selective about the industries they put their money in.
"In 2023, we think dividend growth will be flat on average, but there will be big variances across sectors," he said.
"We expect double-digit growth for financials and general insurers, but we think resource dividends have peaked and we expect them to be 10% lower on average, though select resource names will still deliver."
The current global energy crisis will continue into next year, and this will mean "quality energy companies" will also pay out strong yields.
Then there are the ASX defensive stocks.
"We expect some stronger earnings growth in quality leaders that are more immune to the economic cycle and who can pass on inflation in their business models," said Price.
"Some 'all-weather' dividend payers in the telco and health care sectors, and also in consumer staples, are expected to deliver better-than-market dividend outcomes."
Finally, after a depressed year in 2022, property-related ASX shares could fare much better in 2023.
"We are also expecting strong dividend performance in select real estate investment trusts (REITs) that have global logistics and warehousing businesses, and some local REITs with near fully leased commercial portfolios that have lease profiles that pass inflation on to tenants through ratchet clauses."
