1. Money

Income Investing


While the bond market still has plenty of high-yield investment options, investors are increasingly turning to other areas of the financial markets to boost their income. Among the popular options are dividend-paying stocks, utility stocks, real estate investment trusts (REITs), master limited partnerships (MLPs), preferred stocks, and convertible bonds. Learn more about ways to invest for income outside of the bond market.
  1. Dividend-Paying Stocks
  2. Utility Stocks
  3. Real Estate Investment Trusts (REITs)
  4. Master Limited Partnerships (MLPs)
  1. Preferred Stocks
  2. Convertible Bonds
  3. Highest Yielding Bond Market Segments

Dividend-Paying Stocks

Those who are investing for income have numerous options outside of bonds, and the most traditional – and easiest to understand – choice is high-dividend stocks. Although investing in the stock market involves more risk than investing in bonds, dividend-paying stocks offer modest income and the potential for longer-term capital appreciation.

Utility Stocks

Those who are looking for ways to generate investment income often allocate a portion of their portfolios to utility stocks. Utilities have long been viewed as a conservative option that enables investors to capture higher dividends than are available in most areas of the stock market.

Real Estate Investment Trusts (REITs)

Real estate investment trusts, or REITs, are a type of investment often used by investors who want to boost the yield on their portfolio by participating in the real estate market. Find out how REITs work, and whether you should consider investing in REITs.

Master Limited Partnerships (MLPs)

Master Limited Partnerships, or MLPs, are another potential source of attractive yields outside of the bond market. Are MLPs the right option for you?

Preferred Stocks

Preferred stocks - which are “hybrid” securities that offer some of the features of both stocks and bonds - have some advantages, but there are also reasons for caution. Find out if preferred stocks are the right option for your portfolio.

Convertible Bonds

Convertible bonds are bonds that are issued by corporations and that can be converted to shares of the issuing company’s stock at the bondholder’s discretion. Convertible bonds typically offer higher yields than common stock, but lower yields than straight corporate bonds. But are convertible bond mutual funds and exchange-traded funds the answer?

Highest Yielding Bond Market Segments

The ultra-low rates and government bonds and other low-risk otpions has fueled a search for high-yielding investments. While the highest yielding bond market investments have their share of risk, these four areas may offer answers for those in search of yield.

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