Morningstar's Guide to Investing for Income

Where can you find inflation-busting income? This week we exclusively reveal the best providers of dividends, bond yields, rental income and cash interest rates

Emma Wall 21 July, 2014 | 7:30AM
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Everyone should be an income investor. The hunt for yield is not just for those who need to boost their annuity payments or supplement their monthly income. Investing for retirement? Playing the stock market for long term goals? Yield-paying assets should be on your radar too, because reinvested dividends are the key to doubling your nest egg in a fraction of the time.

Reinvested dividends have been the single biggest driver of equity returns in the UK, the US and Europe over the long-term. Even Albert Einstein was a fan – calling compound interest one of the wonders of the world.

That said – finding income isn’t easy. In the days before the credit crisis cash savings rates were as high as 8%, as long as you were willing to tuck your money away for a couple of years. Now you’d be lucky to get 2.5% from your high street bank, little more than the current rate of inflation. Despite Bank of England Governor Mark Carney promising an interest rate rise in the next 18 months, many are sceptical this will be passed on to savers.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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