Is there a bond bubble brewing? In a recent post on The Smarter Investor blog, financial adviser Doug Lockwood examines what fixed-income investors should be concerned about in today's low interest-rate environment. "Quite simply, when interest rates go up, the value of existing bonds goes down because new bonds issued under higher interest rates are naturally more in demand than old bonds paying out under lower interest rates," he writes. To protect yourself from rising rates, Lockwood suggests a range of options, including buying treasury-inflation protected securities, low-duration bonds, and higher yielding, dividend-paying stocks.
Morningstar's director of personal finance, Christine Benz, recently discussed dividend-paying stocks in this article. She cautions investors that while high-quality bonds and many dividend-paying stocks provide investors with a steady income, there are big differences in the level of risk that investors are taking on when they buy stocks. Aside from the risks involved with investing in dividend-paying stocks, Benz says buyers should be aware of the annual fees of dividend-focused stock funds. Also, some funds hold stocks with higher yields than others, and some funds focus on stocks that have longer histories of consistently offering a decent yield. For interested investors, here are 7 highly-ranked dividend funds.
Source: U.S. News and World Report
Related Articles:
________________________________________________________________
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...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
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...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.