(New York)

Investors looking for income in the stock market are finding it harder and harder to choose the best equities. Quickly rising short-term bond rates mean many income stocks have seen prices wounded and yields no longer look as attractive. The key, therefore, is to diversify one’s holdings in regards to income. For example, Six Flags is a good income stock (4.3% yield), but instead of combining it with REITs or utilities, try convertible bonds, which are yielding ~3%, but have features which make them trade like growth stocks.

FINSUM: Because stock yields are now lagging bonds yields to a considerable degree, equity-focused income investors are now going to need to be more creative.