Sector Picks: Health Care and Energy

Higher interest rates have ushered in an era where income opportunities abound. That’s following years of parched cash flow streams and low rates, especially in fixed income. However, risks like stubborn inflation and elevated stock valuations exist. Morningstar researchers believe it’s important to identify income opportunities that could be resilient in today’s market. Dominic Pappalardo, chief multi-asset strategist for Morningstar Wealth, joined Investing Insights to discuss where to look.

Editor's note: The host misspoke when referring to Morningstar Holland’s chief European market strategist. His name is Michael Field.

Income Investing Strategies for 2026: Maximizing Yield in an Uncertain Market

On this episode:

00:00:00 Welcome

00:01:33 Income investing in 2026

00:04:02 Bond market breakdown: short, intermediate, or long term?

00:07:39 Global bonds and hedging strategies

00:13:27 Equity Opportunities Beyond the US

00:15:31 REITs vs Utilities

00:17:14 Building Resilient Income Streams

Watch more from Morningstar:

All in on Magnificent 7? Where You Should Invest Next

9 Top ETFs for Income Investors That Stood Out in 2025

Where to Invest in 2026 After This Year’s Market Volatility

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