Morningstar's Guide to Income Investing

Is your portfolio earning you the best possible rate of income? Are you prepared for this year's interest rate rise? We show you how to maximise yield and where to find dividend payers

Emma Wall 8 February, 2016 | 8:21AM
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Incomes seekers, there is light at the end of this very long tunnel. Yield hunters have spent the best part of a decade in unaccommodating climes; seven years of record low interest rates on cash, falling bond yields and – post financial crisis – fewer big banks and retail stocks paying dividends.

But now the tide has turned and the Federal Reserve has raised interest rates. It was a long time coming and it will be a long time in the execution too, if market volatility continues. As while the Fed is sticking to its guidance of four rate rises in the next 12 months, many economists are more bearish. In the six weeks since Janet Yellen and her fellow members raised rates across the pond, the global outlook has already shifted significantly, thanks in the most part to uncertainty surrounding China and commodity prices.

Last month Bank of England Governor Mark Carney said that “now is not the time to raise interest rates”.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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