I think that high yield dividend shares could be the answer for income during these times.
The problem for some investors is that solid dividend shares like APA Group (ASX: APA) have seen the yield compressed as the share price rises.
Dividend shares with high yields may be able to boost your portfolio's overall yield enough to get through this period.
Here are three ideas:
WAM Leaders Ltd (ASX:WLE)
This is a listed investment company (LIC) which invests in the larger businesses on the ASX.
It's not necessarily a longer-term investor, so it may not matter that many of the biggest shares are cutting their dividends due to the coronavirus. WAM Leaders can make money from just the capital gain profits.
It can then turn those capital gains into a growing dividend for shareholders. It's run admirably by lead portfolio manager Matthew Haupt.
WAM Leaders qualifies as a high yield dividend share because it has a grossed-up dividend yield of 8.8%.
WAM Research Limited (ASX: WAX)
This is another LIC operated by the investment team at Wilson Asset Management. This one is looking for small and medium growth shares on the ASX.
Again, most of the profits generated will come from capital growth rather than dividends from its owned shares.
Prior to the coronavirus sell-off, it was one of the best-performing LICs out there over the long-term. I think it could be one of the best again in the 2020s.
I can't think of many high yield dividend shares that would have paid out as much as WAM Research over the past decade. It started with a high yield and it has increased the dividend every year since the GFC.
WAM Research qualifies as a high yield dividend share because it has a grossed-up dividend yield of 10.4%.
Challenger Ltd (ASX: CGF)
Challenger is the Australian market leader of annuities. If someone takes out an annuity in Australia it's likely to be a Challenger one, or at least a white label Challenger product.
The ageing demographics are on Australia's side as more people are heading towards retirement over the next couple of decades.
Challenger is a high yield dividend share. But remember that a dividend is not an annuity, it's not guaranteed. But Challenger did maintain its dividend during the GFC and with its normalised profit seemingly stable, Challenger may be able to keep paying its grossed-up dividend of 10.5%.
Foolish takeaway
All three of these shares have high dividend yields and could really boost your income. The low interest rate is probably problematic for Challenger for the longer-term, so with that in mind I'd probably go for WAM Research at this stage for its large dividend yield, the focus on growth and good portfolio diversification.
