Bank CDs are federally insured, amounting to AAA credit. If you need the money before maturity you can easily/cheaply borrow against them. If rates skyrocket, like in the late-70s, you can cash them in early and buy a higher yielding CD. But early termination penalties have become harsher in the past couple of of years. Read the fine print.
I own muni bond funds which survived the 2001 and 2008 meltdowns nicely. The muni market is huge and failures are extremely rare. I've only owned one bond that went BK, but it was an insured revenue bond. The following month the money was back in my account.
As for picking div paying stocks, I'm adamant about shunning ultra high yield stocks which I consider sucker bets. The sweet spot for growth AND income has been about 1%-2% for the past few years. Understand that if you self-pick, you're more likely to buy and sell at the worst times. Humans seem to be wired to do that. I sold nothing in 2000-2002, and in 2008-2010. In fact I added some stock in late 2008. But no one is born with that kind of discipline. Buying then was painful!
I do very little tweaking to my investments. Mostly selling rare tax losses. Bank CDs do have to be watched. (I miss the 1970s when they'd give you a toaster LOLOL)
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