I was speaking with a money manager the other day, and we were assessing interest rates and the situation with bonds. I wondered aloud why anyone would be holding bonds at this time, unless it was part of a long-term diversified portfolio, of which the bond portion is really just a place to park cash. He said, “I would not advise anyone to own bonds right now.” I completely agree. The only direction right now for interest rates is up, and only in tiny amounts, meaning they will not provide attractive returns for the foreseeable future. Moreover, increasing rates means a decline in bond value, so bond holders get slapped with capital losses.
That’s why preferred stocks have been my go-to income investment for several years. They behave just like bonds, but offer dividends of 5% to 9% without the associated downside risk to price. There is some risk, but not much. So, let’s look at three of the best preferred stocks for income-hungry investors: Ashford Hospitality Trust Series D Preferred (AHT-D), Bank of America Corp. Preferred I (BAC-I) and Prudential Preferred Series I (PUK-PI).
Source: InvestorPlace
Related Articles:
- International Diversification May Be Closer than You Think
- 10 Small/Mid-Cap Dividend Growth Stocks Answering The Call
- Free Cash Flow Payout vs. Dividend Payout
- 8 Dividend Stocks With The Right Stuff
- 6 Dividend Stocks Trading at a Double-Digit Discount
3 Preferred Stocks to Replace Low-Yield Bonds
Posted by D4L | Tuesday, December 01, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.