While there may be a general “risk” to owning bonds in a rising rate environment, the peril is generally quite different from the hazards endemic to the stock market.
If you are worried about a bubble in junk bonds, you are likely not alone. As the chart below shows, with the “BofA Merrill Lynch US High Yield Master II Effective Yield” hanging out in the sub-6% region, it is…
Here are a few things that make Fidelity bond trading great: 1. Commissions – If you are willing to trade Treasuries online, there are no commissions.
Which brings me to my first “forever” dividend paying stock, Phillip Morris International (PM) . With a five- year projected earnings growth of 7.95%, the stock trading at a P/E of 15.1 on this year’s earnings, trailing-twelve-month free cash flow of almost $8.4 billion, and a 4.8% dividend, Philip Morris is in solid shape.
For years, investment professionals would always advocate dividend paying stocks as being important to one’s portfolio.
When public companies are taken private, shareholders and bondholders are often treated very differently. It is not uncommon for shareholders to cash out at a healthy premium to the price of the stock just prior to the buyout announcement.
For the past five-plus years, the Federal Reserve has been trying to stimulate growth through “quantitative easing,” a fancy term for buying Treasury bonds that amounts to injecting trillions of newly printed dollars into the economy. Fears that this would…
The risk of high yield bond funds, while seemingly dormant for the time being, should not be underestimated by the average retail bond investor.
Bonds often form the bulk of the portfolios of income investors, particularly retirees who see safety in holding until their bonds mature. But yields as low as they are, there are better income-generators out there in stocks, and among them…
Never let it be said that I’m not willing to travel off the beaten path in the search for solid dividend-paying stocks. I’m especially fond of those paying 6% or more.