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 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 total returns.
- Investors may 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 foreign bonds, as well as other types of investments, such as REITs, convertible bonds and preferred stock. This allows them to further diversify their portfolios while generating income.