High-Grade Bonds Indexed To Inflation Have a Good Future

The opportunities to invest in floating-rate securities are many. For those seeking fortress-type security, floating-rate investment-grade bonds that are bought individually are the best bet as ETFs loaded with these floating-rate bonds were hit hard in March as money flew out of everything. These ETFs tend to be heavily weighted in financials — hence the related volatility. When market corrections come, bank stocks and related holdings get shwacked hard and thus are not safe from big market downdrafts.

Issuers in economically defensive businesses make more sense. Here is a smattering of current issues traded:

1.38% Verizon Communications Inc. Notes due 5/15/2025 BBB+
1.43% AT&T Inc. Notes due 6/12/2024 BBB
0.64% Florida Power & Light Co. due 7/28/2023 A
1.26% Vodaphone Group Plc due 1/16/2024 BBB
1.25% General Electric Co. due 3/15/2023 BBB+
1.00% Qualcomm Inc. due 1/30/2023 A-
0.91% Comcast Corp. due 4/15/2024 A-
0.75% United Parcel Service due 4/1/2023 A-
0.74% Apple Inc. due 2/9/2022 AA+
0.60% Intel Corp. due 5/11/2022 A+
0.90% Abbvie Inc. due 11/21/2022 BBB


Source: Dividend Investor

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