Fixed income investors rely on interest income to pay for their monthly expenses. They have a tough time when interest rates are at historic lows. Cash pays next to nothing (treasuries aren't much better) and the near term looks like more of the same. AAA rated municipal bonds only pay 1.8% for 5 years, or 3.2% for 10 years. A paltry sum and it can be depressing to lock in such a low rate for 10 years.
With the S&P trading at a relatively low P/E ratio, and dividends on blue chip stocks paying relatively well, a good alternative to bonds or cash is to buy blue-chip stocks with good dividends and write covered calls on them. If you want to reduce your equity risk then write deep in the money calls. It's not get-rich-quick, but the yield is significantly higher than bonds or cash.
We discussed this strategy using Dividend Champions in our blog article on How To Double Treasury Rates.
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