Morningstar's Guide to Income Investing

SPECIAL REPORT: Whether you are looking grow your pension pot, or invest for retirement income this week we have all the news, information and education you need

Emma Wall 5 October, 2015 | 9:42AM
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Investments which pay a dividend or yield are more popular than ever. Ever since the Bank of England dropped base interest rate to just 0.5% in March 2009, savers looking for a real rate of return – ie an income stream that beats inflation – have had to look further afield than cash.

Less than a decade ago you could walk into a high street bank and get an 8% rate of interest on a cash savings bond. Now, the best buy rates are less than a quarter of that – savers are grateful for 1.75% on deposit.

UK Equity Income has swelled to one of the largest fund sectors, with these funds regularly topping the most popular charts. High profile fund launches from tried-and-tested managers have helped pull in billions of pounds.

Thanks to the new pension freedoms that came into force in April, income investing is more pertinant  than ever. Rather than being forced to buy an annuity – an investment product that pays income for life, but which has seen its income offering fall in line with interest rates – you can now access your pension saving on retirement. For many investors, it may be uneconomical to employ an adviser to run this money for them. Instead they may choose to self-invest this pot, with the aim of choosing assets that, once blended in a portfolio, pay a steady, reliable income stream.

Of course income investments are not just for those looking to supplement their wage or pay-out in retirement. The power of compound interest means that income-paying assets can be an incredibly powerful tool for growth investors too.

Whether you are looking grow your pension pot, or invest your cash lumpsum for retirement income this week we have all the news, information and education you need. Welcome to Morningstar’s Guide to Income Investing 2015.

Monday: Why Income?

Why you should invest in income-paying assets

Why You Should Consider Income Investing

The Basics of Income Investing

Investing for Income in a Rising Rate Environment

Evenlode: Don't Write Off Consumer Stocks for Income

Tuesday: Stocks Which Pay Dividends

Companies around the world which pay out sustainable income

How to Choose an Income-Paying ETF

BlackRock's Income Picks: Lloyds, Next, Carnival

Merchants Trust: Megacaps are Cheap and High Yielding

3 International Equities for Income Investors

Which US Companies are Rewarding Shareholders?

Wednesday: High-Yielding Bonds

Fixed income investments which provide diversity and income

3 Gold Rated Bond Funds

Investor Views: "I'm 80 and Want to Maximise my Investment Income"

2015: A Difficult Year for Bonds

Fixed Income Opportunities Created by Market Volatility

Henderson Horizon Bond Fund - Under Review

Thursday: Alternative Sources of Income

Property, cash and infrastructure

Getting the Best Possible Income from Your Cash Savings

How Investment Trusts Use Reserves to Boost Income Payments

Commercial Property: 10% Annual Return "Probable"

Investing in Infrastructure ETFs

Veritas Global Equity Income: Gold Rated Despite Volatility

Friday: Income Investing in Retirement

Providing an income from your pension portfolio

3 Trusts that Have Grown Dividends for Decades

Using Dividend-paying Assets to Build a Pension Pot

Income Investing in Retirement

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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