For income seekers, the last few years have been a struggle for sure.
We all know that the Federal Reserve was forced to cut interest rates down to zero in order to jump-start the economy. The end result of that was savers were forced to find other sources of yield. Money market funds, CDs and bonds were simply paying nothing.
For many investors, that meant loading on stocks that pay hefty dividends.
Now, there is nothing wrong with dividend stocks, but many investors have started to really think of them as bond proxies. That’s especially true since volatility has been pretty nonexistent over the last few years. However, bonds and stocks aren’t one in the same. And investor shouldn’t think of them as such.
Check out a list of ETFs that wrap around equity here.
