The search for yield has income investors casting a broad net that includes asset classes such as junk bonds, preferred stocks, REITs and MLPs.
Traditionally, these investments have provided excellent income streams and even periods of equity-like returns.
However, many of these dividend generating sectors have reached the point where their annual yields are no longer attractive due to the capital appreciation of the underlying securities. This in turn makes it difficult for new money to effectively take advantage of both income and growth potential moving forward.
Prudent income seekers may be looking for other opportunities to enhance the yield on their portfolio, in which case they should closely examine the YieldShares High Income ETF (NYSE: YYY) and PowerShares CEF Income Composite Portfolio (NYSE: PCEF). Both ...