While the recent surge in bond rates could spell trouble for some corners of the equities market, there is a silver lining for income investors looking to bolster their dividend portfolios.
As bond yields rise, income distributions from bond exchange-traded funds (ETFs) gradually adjust to reflect those increases. But the likelihood of higher future payouts makes two ETFs—that already provide investors with strong yields—increasingly appealing: the Vanguard Short-Term Bond ETF (NYSEARCA: BSV) and Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ: VCIT).
