Successful income investing is all about yield. The key to building a productive portfolio is to choose securities that provide good cash flow, consistent with your risk comfort level, while maintaining or increasing their market value.
There’s no trick to creating a portfolio that returns 2.25 per cent each year. Just plunk the money into five-year GICs and forget it. But for most income-oriented investors, that’s not enough. They want yields of 4 per cent or higher from their investments and may not consider anything that doesn’t meet that benchmark.