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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Three Bond Yield ETFs With Juicy Yields |
ETFdb - May 23, 2011 - by Jared Cummans
With interest rates continuing to hover near record lows, investors accustomed to generating attractive current returns from high quality fixed income securities have been forced to get creative in their quest for yield. The prolonged period of low rates has posed problems for those who rely on their portfolio to generate proceeds to cover living expenses, as payouts on Treasuries have sunk. High quality corporate debt isn’t much more attractive, as companies have issued debt this year in record amounts in order to take advantage of extremely favorable borrowing terms.
Google recently issued $3 billion of debt at just 1.25% for one-year notes and 2.125% for three-year notes, while Johnson & Johnson recently issued $3.75 billion that included two-year notes paying the lowest interest rate for bonds of that maturity in records extending to 1999, according to Bloomberg.
Approaches to beefing up yields have varied widely. Some have gravitated towards dividend-paying stocks, with many embracing a slew of ETFs that use various strategies to tap this corner of the equity market; others have turned towards securities such as MLPs or BDCs that generally pay out attractive distributions in order to maintain favorable tax status.
Turning Towards Dividends
Dividend or yield investing has become increasingly popular over the years, as investors have seen the extreme benefits that this strategy offers. Dividend-paying stocks can make for effective inflation hedges, as yield payouts tend to rise in inflationary environments, providing some hedge against rising prices. Yields also somewhat protect against bear markets, helping to cut investment losses with steady income payouts through out the year [see also Bond ETFs: 12 Stops Along The Risk/Return Spectrum].
At first glance, it can be easy to overlook dividend yields when making investment decisions. For example, seeing a 2% yield on a fund may seem minuscule, but consider this; a portfolio with a baseline investment of $100,000, earning an average 2% annually off of dividends will appreciate to approximately $122,000 in 10 years, and nearly $150,000 in 20 years, assuming the gains are re-invested and no appreciation in stock price. In fact, a recent study conducted by Standard & Poor’s revealed that dividend components were responsible for 44% of the total return in the last 80 years of the S&P 500′s history. From 1950 until 2010, an investment of one dollar with dividends and reinvestment would have performed eight times better than a dollar invested in a non-dividend fund; that dividend invested dollar would be worth roughly $500 today [see also Examining International Dividend ETFs].
There are a number of ETFs designed to focus on dividend paying stocks, from the suite of WisdomTree funds linked to dividend-weighted indexes to ETFs such as the Vanguard Dividend Appreciation ETF (VIG) and SPDR S&P Dividend ETF (SDY) [see Examining International Dividend ETFs].
For the complete article.
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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