Baby bonds, or exchange-traded debt, are similar to preferred stock in that each behaves both like a stock and a bond. Baby bonds trade like stocks on the major exchanges, however there is a narrow range of prices they trade in. It is easier to trade baby bonds because, unlike regular bonds that often trade in minimum baskets of $10,000, you can buy or sell any amount. Like many bonds, they push out distributions on a quarterly basis. However, the money gets taxed as ordinary income, not as dividends. Here are three issues worth looking at for your portfolio...
Stanley Black & Decker 5.75% Jr. Subordinated Debentures (NYSE:SWJ) are baby bonds issued by that most famous of consumer brands, Stanley Black & Decker, Inc. (NTSE:SWK). Entergy Louisiana 5.25% First Mortgage Bonds (NYSE:ELB) are issued by a public utility (electricity) that is based in Louisiana. Legg Mason Inc. 6.375% Jr. Sub. Notes Due 2056 (NYSE:LMHA) are bonds courtesy of the solid and reputable investment firm of Legg Mason, Inc. (NYSE:LM).
Source: InvestorPlace
Related Articles:
- Characteristics of Great Dividend Growth Stocks
- 8 Dividend Stocks With A 15% Yield In 15 Years
- Don't Touch These 5 Dividend Stocks!
- 9 Higher Yielders With A Low Free Cash Flow Payout
- 6 Dividend Stocks Headed In The Right Direction
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
April has time and again proved to be favorable for stocks. But this time around, April has arrived during midterm election, which usually s...
0 comments
Post a Comment
Post a Comment