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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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Real Estate Shares For Yield-Hungry Investors
Looking for attractive dividend yields? Forget bonds and consider the preferred stocks of real estate companies. |
Forbes.com - Sept. 9, 2010 - Stephane Fitch
Where can an investor find a rich but reasonably safe stream of income these days? Not from most stocks. The dividend yield on the Standard & Poor's 500 is a stingy 2.1%. Ten-year Treasuries are hardly better, yielding 2.5%. Take on some credit risk with corporate bonds near the bottom of the investment-grade spectrum (Baa) and you'll earn about 5.5%--a level so low it was last seen when Lyndon Johnson was President.
If you want to stay in investment-grade territory and still earn considerably more than that, look to where others are not: preferred stocks. Many are yielding 7.5% to 8%, which is well above their 6.5% average for the decade through 2008.
Why the juicy yields? One reason is that the big issuers are banks, insurers and real estate companies--hardly the sectors that let coupon-clipping investors sleep soundly these days. Nor does it help that preferreds are a stock-and-bond hybrid that some regard as combining the least attractive traits of each. Although technically a form of equity, preferred shares confer no voting rights and do not enjoy dividend boosts when times are good. From a bond investor's vantage point, preferreds carry the disadvantage of putting owners ahead of only common stockholders in bankruptcy court.
What is attractive about preferreds is that, true to their name, they get top priority in receiving dividend payouts. That's a nice position to be in during times when issuers are experiencing neither rapid growth nor rampant bankruptcies.
For a half-century through 2006 investors traded preferreds at yields above those on the common stocks of the same issuers but below those on the highest-yielding investment-grade bonds, says Kenneth Winans, a San Francisco financial advisor. As the financial crisis hit, yields on preferreds jumped above those of Baa-rated corporate bonds and today are still paying about 1.5 percentage points more.
Joel Beam has been running the $1 billion (assets) Forward Select Income Fund for nine years and is a preferred-share evangelist. The 39-year-old manager's fund has returned 8.6% annually after fees during his nine-year tenure and 18.3% so far this year. He suggests looking beyond the bank and insurer preferreds that dominate the $200 billion market to paper issued by real estate investment trusts.
For the complete article visit Forbes.com
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| Stuff to look at |
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Income Security Recommendation January 2013 Issue.
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