Yes, there are individual stocks that offer attractively high yields, but often behind these yields are lurking problems. In some cases, yields are high as a result of a shrinking stock price — itself a product of a business that’s not very attractive in the first place. Meanwhile, most bond yields are just inadequate for generating meaningful income.
However, funds can help investors diversify some risk out of the equation while seeking income in a world weighed down by a zero-interest-rate policy.
Here are three funds to buy for income — a couple of ETFs that seek out income from stock dividends, as well as a mutual fund that takes a road less traveled to generate high income and some capital appreciation.