You don't need to be a genius to understand that the low interest rate environment is having a substantial effect on investors' ability to find income. The traditional 'safe haven' of income-seekers--that of developed world sovereign bonds such as UK Gilts--is in many cases offering a negative real return. With the Bank of England holding UK rates at a record low of 0.5% for more than three years now, and inflation remaining stubbornly high in comparison, yield-seekers have been forced to climb up the risk ladder in search of much-needed income.
Throughout the week of July 16-20, Morningstar.co.uk played host to 'Seeking Income Week'--five full days of education, commentary and insights into why investors need income, how and where to look for it, and what you can do with it once you've got it. Amongst others, we heard from professional investors on how they're finding income opportunities in dividend-paying equities, corporate bonds, emerging market debt and property investments, in spite of the seemingly sour income environment.
Below are links to all the week's income-seeking articles and videos. Please share your own thoughts on income strategies in the comments section below this article.
Monday
Income Essentials
What is income, why do I need it and what is the current income outlook?
The Basics of Income Investing What is income investing and what routes are available to income investors?
Three Buckets for Income Investing Morningstar OBSR's Peter Toogood outlines three income strategies and gives his views on the current investing environment and outlook.
High Yields To Be Found Among Safer Investments Fidelity's Tom Stevenson describes the lay of the land--tools for providing income, and how to balance equity and fixed income in a portfolio.
A Toolkit for Protecting Against Inflation Saxo Modern Wealth Management outlines the investor toolkit for seeking yield and tackling inflation.
Income Opportunities in Defence and Infrastructure Merchant Trust manager Simon Gergel explains why income is so important and gives his views on UK equity opportunities.
Avoiding Income-Investing Pitfalls Five tips for staying on the straight and narrow when investing for income.
Tuesday
Investing in Stocks for Income
The role of dividends, top-paying dividend stocks and asset managers' favourites.
Look to UK Dividend Stocks for the 'Best' Returns The returns currently offered by UK dividends are amongst the best you'll find anywhere in the market, says author and long-term investor Rodney Hobson.
Dividend-Payers We Like to Watch Morningstar analysts highlight some of the stocks they keep an eye on from an income point of view.
Top Stock Picks for UK Income Seekers If you're looking to boostyour portfolio's income, try taking a leaf from the books of top UK equity income managers.
5 Signs of a Dividend in Danger With appetite strong for higher-yielding shares, it's important investors take notice of signs that a dividend might be in danger.
2 Common Misconceptions About Dividend Investing Iain Lance of RWC Equity Income Funds outlines two dividend-related misconceptions that can lead investors astray.
Dividend Income Versus Dividend Growth While the higher yields from high payout ratio stocks are enticing, stocks that offer dividend growth are generally higher quality.
Beat the Market with Dividends Timing the market is tricky, but buying dividend-paying stocks is not.
Look at the end of this article for links to Fund Managers' Favourite Dividend Stock Picks.
Wednesday
Investing in Bonds for Income
Articles that examine the purpose of fixed income. Plus, tools for making corporate bonds, high yield debt and emerging markets debt work for you.
10 Things You Need to Know About Fixed Income Make sure you're fully aware of the ins and outs of fixed income investing before you take the leap.
US for Equities, Emerging Markets for Fixed Income A global recession isn't in the cards but investors can avoid Europe by looking to the US and global emerging markets, says MFS Investments' chief investment strategist.
Seeking Yield with Emerging Market Bond ETFs - A guide to investing in emerging market debt; a market offering yields that are much higher compared to “safe” alternatives.
Altering Duration of Your Fixed Income with ETFs Changes in economic policy may call for a rebalancing of your portfolio’s asset class mix, and ETFs will prove useful.
A Low Cost Tool for Exposure to a Hot Topic? Corporate bonds and emerging markets are hot topics for income-seekers, and a new ETF combines the two at relatively low cost.
Making High Yield Corporate Bonds Work For You What are high yield corporate bonds? Is the current boom sustainable? Where is the value at and what role should this asset class play in an investment portfolio?
Thursday
A Fund Toolkit for Seeking Income
Fund structures that favour income-seekers and top-rated OEICs, investment trusts and ETFs for income.
Top-Rated UK Equity Income Funds Looking for yield from UK equities? These funds come with Morningstar analysts' highest qualitative accolades.
4 Income Funds That Pay Quarterly Dividends Morningstar's Mark Preskett highlights four funds that pay dividends more frequently than most and could be suitable for invcestors wanting regular income.
Investment Trusts for Income A look at which specific investment trusts could be suitable for income seekers.
Investment Trusts: Ultimate Cash-Generators A little thing called a “revenue reserve account” allows investment trusts to ensure they pay stable dividends to shareholders.
Passive Investments for Generating Income ETFs can be a good way to gain exposure to income-generating assets at relatively low cost.
Friday
Income Strategies
Income, capital growth and total return, reinvesting dividends, and annuities versus income drawdown.
How Do I Achieve My Financial Goals? Whether you're a DIY investor or you have an adviser, a newbcomer to investing or an old timer, here are some essential tips for achieving your financial goals.
Tax Perspective: Income vs. Capital Gains From a tax perspective within your investment portfolio, is it better to generate income or make capital gains?
Accessing Your Pension: Annuities Vs Income Drawdown Understanding the different ways to pay yourself an income in retirement.
Share Classes: Accumulation vs. Income When buying a fund, should you buy the accumulation or the income share class?
5 Different Retirement Withdrawal Plans A discussion of the pros and cons of five different oft-used retirement withdrawal plans.
Income Vs Total Return: Why Take Sides? Don't get hung up on labels; the bet approach melds both strategies.
Create a Pay Cheque with a Total Return Approach If you're looking to establish a sane, sustainable withdrawal plan in retirement, then follow this tips
From Our Archive
Dividend Manager's Top Tips for High-Yield Stocks Thomas Forsha outlines some key consideration for investors looking for high-yielding dividend stocks.
Dividend-Seekers: Be Wary of High-Yielding Stocks Thomas Forsha, subadvisor to Aviva Investors, discusses whether we're approaching a dividend bubble, how to seek companies that will grow dividends, and why he likes small-caps for high yield.
Firms That Quadruple Their Dividends (And More!) Investment trust manager Nick Train pinpoints companies that have more than quadrupled their dividends over the long run.
Fund Managers' Favourites: High-Yield Small-Caps Small-cap fund manager Dave Taylor outlines three of his favourite dividend-paying companies.
Fund Managers’ Favourites: Dividend Stocks Fund manager Hugh Yarrow discusses his three favourite dividend-paying stocks.
Investment Trust Picks for Income-Seekers Morningstar's Szymon Idzikowski explains why income-seekers should consider investment trusts and highlights a few of his favourites.
