Scrounging for Yield Is Dangerous
High-yield bonds are expensive, but if you absolutely demand high income, here's a closed-end fund to consider.
A version of this article was published in the May 2014 issue of Morningstar ETFInvestor. Download a complimentary copy here.
For the past year or so, I've warned ad nauseam that stretching for yield is dangerous. When your Aunt Marys and Uncle Joes are climbing onto the bandwagon, it's time to hop off. Of course, many readers still want income assets and have duly ignored my finger-wagging. Rather than preach abstinence, I've come around to the notion that it's better to teach safe, um, income investing.
Samuel Lee does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.