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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
|
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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Invest For Income In The Bond (Not Stock) Market |
Seeking Alpha - August 26, 2011 - By Lawrence Welnman
It seems that everywhere one looks, a particular piece of advice has been presented amidst the recent weeks' market volatility, falling stock prices, and sharply declining bond yields. With the ten year Treasury bond yielding close to 2% the argument goes, investors are better off purchasing stocks that offer high dividends above that of the Treasury bond. Not only do you get high yield, according to this advice you get potential for capital appreciation as well.
Left out of that argument are mentions of the fact that the stock dividend yields look high because the stock prices have fallen (and if the stocks fall further, those dividends will look even more attractive, that the stocks also have more risk of capital loss - a year’s dividend yield is easily wiped out in a day’s move in stock price) and stocks are more volatile than bonds. In other words, stocks and bonds are different as they are not interchangeable in a portfolio. Investing for income should be done with bonds and stocks and should be bought for total return (dividend +capital appreciation).
A version of the dividend stocks instead of bonds argument is presented in the WSJ of Aug 22 by Prof Jeremy Siegel. It’s not a coincidence that he is a senior advisor to Wisdomtree, a firm that specializes in dividend weighted ETFs. Prof Siegel’s argument is a reprise of one he made in August of 2010 when the ten year treasury bond yield was at 2.8% and reiterated in the FT on February 2 of this year: Treasury yields on both nominal and inflation protected bonds are too low, those markets are in dangerous bubbles and investors should avoid them and instead purchase dividend paying stocks.
Here is the total return of the the long term inflation protected bond ETF(LTPZ) the wisdomtree large-cap dividend ETF (DLN) the long term nominal treasury ETF (TLT) and the SP 500 ETF (SPY). Since Prof Siegel’s 2010 article making the same argument against bonds and for dividend stocks.
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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