FYI: Finding income in a low-yield environment:
What’s an income investor to do? Especially with recession risk rising, Jones cautions bond investors not to put too much money into high-yield or low-rated investment-grade bonds. “Don't stretch for yield late in the business cycle,” she said. “You're not really getting compensated for [the risk] in terms of excess spread.”
Instead, she recommends a diverse mixture of Treasurys, high-quality corporates, and municipal bonds for taxable accounts, as well as dividend-paying stocks and preferred shares in equity portfolios. “Spread the risk around as much as you're comfortable, not try to target a specific yield because that will be probably a losing proposition,” Jones advised.