And bonds don't pay anything, either. It's all puny. While it's not hard for seasoned investors to recall when interest rates were high and CDs were paying double-digit returns, it can be trickier to remember how dividend yields on stocks have changed. While providing income is an objective for both of the Evergreen and Oppenheimer funds, their portfolio managers go about finding it in different ways. O'Neil particularly likes convertible bonds, because she says that they represent a marriage between fixed income and equities.
Interest rates are extremely low.
Jennings also has the luxury of being able to invest anywhere in the world he chooses, because the fund is categorized as global. Not too long ago, its portfolio contained more bonds than it does today. Another way to provide income is to sell stock holdings. Portfolio managers do it all the time. The catch, of course, for individuals and fund shareholders is paying the capital gains tax, which is due as a result of selling those securities for a profit.