Use select charts from the Guide to the Markets to engage in portfolio discussions.
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Diversified sources of income
With interest rates at historic lows, investors should think about diversifying both across asset classes and internationally to achieve higher income.
Broadening the search for yield: Diversify across asset classes and around the world
- Dividends can be another important source of income. In fact, dividends have accounted for a sizeable share of historical stock market returns.
- Investors might also look abroad for income solutions, as dividend yields on foreign stocks are often higher than those in the United States.
- Investors can generate income from other types of investments, such as REITs, convertible bonds and preferred stock, allowing them to further diversify their portfolio holdings while continuing to generate a satisfactory stream of income.