Morningstar sees slim pickings for income investors

"Really, investors need to be looking for the less well-loved assets, where they are underpriced rather than overpriced, so we would see some of the traditionally more volatile credit assets, such as local currency emerging market bonds, as being in some ways a lower-risk source of income as they are less overvalued."

He also cited some emerging market and European market equities as being potential good sources of income. "Investors need to be going beyond the traditional sources and doing their research", he added.