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
-
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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
When many investors think about tech stocks, they often think first about high-growth names that come with outsized risk -- not mature, divi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.