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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
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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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| 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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These Bear Market Investments Pay 8% Dividends |
Steve Sjuggerud's DAILY WEALTH - July 6, 2010 - by Tom Dyson
Not all stocks pay dividends. Take Ford Motor, for example. It's one of the largest manufacturing concerns in the country. But its stock pays you no income.
Here's the thing: You can still get an 8% dividend from Ford. Just use ticker symbol F-S. (If you use Yahoo Finance, type in F-PS.)
Quite simply, some 200 businesses across the country, including Ford, have issued special securities to borrow money from the public. These securities trade on the stock market just like regular stocks, but they're really income securities. When you buy these securities, you're lending money to the issuing company. They have a legal obligation to pay you interest and dividends on your capital. When they've finished with your capital, they must pay you back your money in full.
The key is, the dividends on these securities are four to five times higher than the average dividend paid by common stock investments. And because they're debt securities, they don't fall when the stock market falls, so your money is safe in a bear market.
On Wall Street, these investments are known as "preferred shares" or "preferred stock."
Don't let the word "stock" confuse you. Preferred stocks are an unusual hybrid security similar to bonds... even though companies can record them as stock in their accounting statements.
There are thousands of preferred stock issues in America, and most of them are only traded in million-dollar blocks between institutions. Around 1,000 preferreds, issued by around 200 large companies, trade on the NYSE. They have symbols you can type straight into Yahoo Finance and any discount broker can buy them for you. You can get in and out of preferred stocks at any time. Commissions should be the same as on common stocks, and you can hold these in your IRA like stocks.
Take Ford's preferred stock as an example. It trades with a face value of $50 and pays a dividend of 6.35%. That's a yield of 8% at the current market price.
If preferred stock is a debt, what's the difference between it and a regular bond?
Maturity date is one difference. Preferred stock has no maturity. The company can redeem preferred stock any time after an initial lock-up period. Bonds mature on a set date.
There are other small differences. For instance, bondholders have a senior claim on assets in a bankruptcy over preferred holders. Bondholders pay income tax on their interest income, whereas the interest from preferred shares typically counts as dividend income, and the IRS taxes it at 15%.
Unfortunately, not many people know about preferred stocks. They trade in a tiny niche of the market. And stock exchanges consider them a burden to list and sell.
That's why Wall Street brokers almost never recommend them to their clients. And it's why 99% of Americans have never traded a preferred stock.
So how do you add these safe, high-income investments to your portfolio?
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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