Dividend stocks and closed-end MLP funds are two options for income-oriented investors in an uncertain market, while bonds offer retirees less equity risk and additional income.
Investors Grow More Adventurous in Their Search for Income (Financial Times, March 20)
Institutional investors are allocating less to fixed income in Europe and North America, the opposite of what is being seen abroad by Asian investors. North American investors are increasing allocations to equities and alternative assets with a significant increase to private debt. “Institutional clients are mostly being advised to consider gaining exposure to securitized debt and private debt through multi-asset credit funds that invest in assets such as real estate debt, infrastructure debt, asset-backed and mortgage-backed securities and ‘higher quality’ collateralized loan obligations.”
Why Income Investing Is Vastly Underrated (The Motley Fool, March 24)
With global uncertainty in 2017, dividend stocks “could become increasingly in-demand, which may make their capital gains relatively high this year.” Dividend shares traditionally appear in lower risk sectors such as utilities and provide insight into the financial health of a company. Although the “potential for market-beating gains may be lower” dividends may boost portfolio returns in the long run.
