It's no secret that investors are currently spoilt for choice when it comes to income. Jitters about interest rates and inflation aside, a humble 10-year UK gilt still offers a yield of more than 4 per cent and is essentially risk-free for those who buy and hold.
IC TIP:
Buy
Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
- Well-diversified
- Paying down expensive debt
- Rebound in demand-based assets
- Cheaper than rivals
Bear points
- Flat dividend
- Tough time for infrastructure
- Portfolio changes bring new risks
Income stocks are faring well too, with companies such as Vodafone (VOD) and M&G (MNG) offering yields north of 9 per cent. Some investment trusts are even more enticing, with Henderson Far East Income (HFEL) offering 10.1 per cent.