Income investors left with something of a 'Hobson's choice'

The choice is limited for relatively risk-averse investors looking to generate significant income from their investments, says Axa's Richard Marwood

With bond yields low and interest rates on cash deposits even lower, neither asset has strong income attractions. To generate income, investors are left with something of a 'Hobson's choice' - invest in equities. The equity market is offering attractive dividend yields, but this income is accompanied by significant capital volatility, something that may make those of a cautious nature distinctly uneasy. Furthermore, sizeable dividends at a number of companies have been reduced (for example, at Standard Chartered); cut entirely (such as at Glencore); or their sustainability remains the...