3. Wells Fargo Advantage Income Opportunities Fund ( EAD) Company Description: The fund invests in utility, financial, telecommunication, industrial, consumer staple and materials companies. The fund also has the option to invest in term loans. Dividend Yield: 9.5% Typically, this fund invests at least 80% of the portfolio in high-yield bonds and preferred stock. Over the past few years, the quality of high-yield corporate securities has improved significantly as those companies were forced to improve operating efficiencies and maintain cash on the balance sheet, making them less likely to default on their debt obligations. As a result, some junk-rated debt can be a very attractive investment opportunity.