Yields (How Sweet They Are)
From dividend-paying stocks to inflation-protected bonds, today's income sources can still provide plenty of cash — but you need to know where to look
There's nothing like cash in hand — or the promise of a steady stream of it — to calm investors' nerves during turbulent times. And in recent months, as a good number of stocks have dropped sharply and many bonds have also suffered, many people have turned their attention to income-producing investments. Despite broad market volatility — or, in a few cases, because of it — intriguing opportunities have emerged, with some bonds and dividend-paying stocks selling at significantly lower prices. Even stodgy Certificates of Deposit (CDs) are looking relatively tempting.
That can be welcome news. Historically much of the stock market's total return has come in the form of dividends, and that income could be particularly helpful now if share prices continue to decline. At the same time, those who depend on cash from their investments may also want to re-examine their holdings. By emphasizing value-priced, high-quality bonds and high-yielding blue-chip stocks, investors could potentially increase their income without taking excessive risks. Of course, investors must keep in mind that past market performance does not guarantee future results.