Best Income Investments Now: Yields of 5% or More

When it comes to income, investors essentially have two choices: stocks or bonds. While the S&P 500 yields just 1%, there are plenty of pockets of the stock market where investors can snag 3%-plus dividend yields, including utilities, REITs, pipelines, and one of the most hated sectors, cable and telecom.

Details

According to a report from Barron's, Russ Brownback, BlackRock’s deputy chief investment officer for global fixed income and co-manager of the BlackRock Strategic Income Opportunities fund, said, "Yields are very attractive." He noted that investors can achieve yields of 5% or more through a mix of high-dividend stocks and bonds.

Context

In the current interest rate environment, bonds have become more appealing, but stocks still offer opportunities in the mentioned sectors. For example, companies like Broadcom (AVGO), BlackRock (BLK), and Exxon Mobil (XOM) offer above-average dividend yields.

What This Means for Investors

Income-seeking investors can diversify their portfolios between high-dividend stocks and bonds to achieve 5%+ yields, while being mindful of the risks associated with each asset class.