Where can we find guaranteed returns? There was a time where the bank would pay a decent return on CDs or money market accounts. Heck, even our savings account used to pay us a decent, risk-free return. But with the Federal Reserve driving interest rates down to zero during the financial crisis, our risk-free returns simply vanished.
The most obvious place for guaranteed returns comes from Treasury bills, notes and bonds. For quick reference, Treasury bills — or T-bills — mature in one year or less. Notes mature in two to ten years and Treasury bonds mature in 10 to 30 years. From a default standpoint, Treasuries are considered risk-free by most investors. Note that these are not guaranteed returns, but they are highly, highly likely returns. Investors who feel comfortable doing so, can buy bonds in individual stocks.
Source: Investor Place
Related Articles:
- Dividend Growth Stocks Are My Conviction
- 5 Stocks With A Low Debt To Total Capital
- Should You Sell A Dividend Stock After A Dividend Cut?
- All Investing Involves Risk
- 4 Dividend Stocks With Room To Increase Their Payout
________________________________________________________________
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...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
0 comments
Post a Comment
Post a Comment