Bonds are great for those seeking to generate investment income. They typically make fixed-income payments, providing their investors with predictable cash flow.

However, a drawback of fixed income is that inflation erodes its buying power over time. A potentially better alternative is to invest in high-yielding dividend stocks that can steadily increase their payments. Kinder Morgan (NYSE: KMI),  (NYSE: VZ), and W.P. Carey (NYSE: WPC) stand out for their bond-like income streams that should continue rising in the future.

Kinder Morgan currently offers a 6.6% dividend yield. That's a higher income yield than most high-quality bonds. For example, the 10-year U.S. Treasury bond currently yields about 4.3%, while the average investment-grade corporate bond has a yield to maturity of less than 6%. That means investors can generate more income per dollar invested in Kinder Morgan's stock. 

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Source Fool.com