5 funds to boost income

Financial Journalist
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Chuck Prince’s notorious line: “… As long as the music is playing you’ve got to get up and dance,” seems apt after the Reserve Bank’s interest rate cut this week.

In 2007, Prince, then CEO of Citigroup, used the line in the lead-up to the Global Financial Crisis. His saying could apply today in the hunt for yield. Everybody knows that buying a small group of yield stocks for income is crazy, but income investors have limited choice.

The RBA risks making the music a little louder with each rate cut. Who knows what will happen when rates are cut again twice in the next six months and the RBA adopts a form of quantitative easing. Investors who need at least a 5% yield will have to buy shares.

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