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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
The truth is, some of the best dividend stocks can be found outside the United States. The world is filled with a variety of strong multinat...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
As we have seen plenty of times, a company that can’t cover its payout will have to cut its dividend at some point. And when that happens, t...
0 comments
Post a Comment
Post a Comment