High yield bonds are risky - especially right now

Use them in your reach for income, but not more than 10% of the way  

Ruth Saldanha 9 December, 2019 | 8:14AM

Faucet

Income investors are looking for yield anywhere they can with interest rates so low. Some have gone as far as replacing bonds with dividend stocks (might not be the best strategy, especially more risk-averse investors, because at the end of the day, they are stocks and have limited downside protection).

At the same time, bonds are not returning what they used to. So where should income investors go?

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Cominar Real Estate Investment Trust7.55 CAD0.80
Inter Pipeline Ltd8.19 CAD2.50
Keyera Corp13.07 CAD-2.68

About Author

Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca