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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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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
|
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
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
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
|
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)
|
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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4 Utility Stocks Yielding Far More Than Their Corporate Bonds |
Seeking Alpha - May 25, 2011 - By Stephan Rosenman
The bond market can point out which stocks are buys.
Right now, many medium range bonds yield far less than their companies' stock dividends. In essence, these bond holders lend money at low rates, only to have the borrowing companies return higher yielding dividends to stock investors.
Today, I'll examine a few utilities' stock dividends and callable bonds. These companies often trade at significant premiums, a sign that lenders believe the underlying business is sound. Bond holders have bid up these notes despite significant call risk. In contrast, the stocks can have a strong history of raising their dividends. The bonds make stock buying easier: search for high premium bonds, check if the stock has a better yielding dividend and a history of raising that dividend, and make a purchase.
1. CMS Energy Corporation (CMS): CMS is a 5 billion market cap Michigan electric and gas utility with a 4.25% dividend. It has been increasing its dividend every year for the last 4 years: in 2007, CMS paid $0.20 a year; this year, CMS pays $0.84 a year. The increase in dividends has been steep to say the least. I doubt its done raising the dividend. On the other hand, CMS.GKU / CUSIP: 210518CS3 with CMS.GKU / CUSIP: 210518CS3 yields 3.772%. Trading at $120.70, with a maturity in 2019, the bond has a lower yield and call risk to boot. The stock is far more appealing. The bond is screaming to investors to buy the stock
For the complete article and graphs.
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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