It’s the last day of the first quarter. And for income-loving investors, that means just one thing: Happy quarterly dividend day!

But with the flurry of companies paying their distributions comes a downside: Yields aren’t what they used to be.

Do you remember the good old days, in 2022 and 2023, when inflation was ripping and you could buy a guaranteed investment certificate yielding 5 per cent? Or a dividend stock yielding even more?

Or simply park cash in a money-market fund, which holds short-term debt securities, and get a 4 per cent return?

Gone, gone and gone. Rest in peace, lovely big yields.

Today, anyone looking for investments that will generate attractive income – perhaps to fund retirement, save for a down payment or reduce stress related to stock market volatility – have fewer options.

Five-year GICs from large banks now yield under 3 per cent in many cases. Money market yields are hovering just over 2 per cent, according to the Bank of Canada.

As for dividend stocks, Royal Bank of Canada’s RY-T dividend yield is just 3 per cent, Fortis FTS-T is 3.3 per cent and TC Energy Corp. TRP-T is slightly under 4 per cent – all down substantially over the past couple of years, as share prices ripped higher.

To be sure, there’s a silver lining to shrinking yields.

The Bank of Canada has licked inflation, removing a huge economic threat. Interest rates are down sharply, which has lowered borrowing costs and eased pressure on bank loan books.

Lower GIC rates money market yields reflect this stable environment.

And declining dividend yields are the by-product of soaring share prices: RBC has rallied 90 per cent since October, 2023, when fears of inflation began to subside. Fortis has gained about 50 per cent over a similar period.

But silver linings won’t pay for your house or a vacation abroad. And folks investing today – perhaps with maturing GICs or accumulated dividends – don’t care about the spectacular yields in 2023. They need attractive yields now.

One solution is to look abroad. I know, I know: Buy Canadian.

But U.S. fixed income yields are generally more attractive because interest rates there are still relatively high, at a range between 3.5 per cent and 3.75 per cent (compared with 2.25 per cent in Canada).

That means U.S. bond funds and U.S. dollar money market funds are still attractive.

Preferred shares are another option. These are essentially bond-like securities that are traded on stock exchanges, usually with a payout set for a specific period and a $25 starting price.

Many blue-chip companies with investment-grade credit ratings issue preferred shares, including banks and utilities. Look around and you’ll probably find shares yielding over 5 per cent.

But be warned: Rising interest rates can weigh on the prices of some preferred shares; others get hit when rates fall. And finding detailed information about them can be challenging.

The best bet for newbies: Buy a mutual fund or exchange-traded fund that hold a large number of preferred shares to spread out the risks. (Still perplexed? This will make a great topic for an upcoming newsletter.)

A third option for income-oriented investors is to look beyond the usual suspects among financials and utilities – that is, if you can stomach the risk.

Telecoms have attractive dividends, though these payouts are hardly secure given the sector’s high debt loads and limited growth prospects. Same goes for some real estate investment trusts, or REITs.

Another attractive sector beyond the usual suspects: energy. Some Canadian oil producers have been rewarding investors with rising dividends, and the recent surge in oil prices bodes well for additional hikes. Well, if high oil prices stick around.

Are you seeking income from your investments? If so, tell me how you’re going about it. I’m at dberman@globeandmail.com.