Go for the dough: Stock and bond dividends are high now

— -- Q: What is a good way to invest so I get dividends? I'd like the money to last for at least eight to 10 years.

A: It's a great time to be an income investor.

If you're willing to shoulder some risk, there are unheard of opportunities to earn income. But you might want to expand your horizons beyond stock dividends. There are some other opportunities for income that might provide more stability and safety.

Clearly, stock dividends are an option. The Standard & Poor's 500 index, for instance, has a dividend yield of 3.3%, which is its highest since 1990. If you exclude the 124 companies that do not pay a dividend, the yield is more than 5%. That's a return that rivals what high-quality corporate bonds would have paid last year.

If you're willing to do even more homework, consider preferred stock. Preferred stock is unique in that it gives you a perpetual stream of income, like a stock dividend, but with higher, more bond-like yields. If you're interested, start by reading this.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns.