Should You Maintain an Allocation to Bonds When Current Rates Are Low?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Closed-End Bond Funds Versus Individual Bonds: A Case Study Closed-end bonds may look attractive based on their yields and discounts to net asset value, but there are pitfalls to watch out for. This article is a case study of a defined-maturity closed-end fund. The…

 

Bond Analysis: The Concept of Duration

Bondholders can be hurt by a number of circumstances: the issuer may decide to redeem the bonds before the maturity date, the issuer may default or interest rates may fluctuate and reduce the overall return of the bonds to the investor. The first two risks, call risk and default risk, can be minimized by careful…

 

12 Characteristics to Look for From a Dividend-Paying Stock

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Dividends Are Still Valuable Though certainly not as sizeable a contributor so far in the 21st century, over time, dividend income and its reinvestment has comprised a significant portion of long-term stock gains. Even better, over the long term, dividend-paying stocks have delivered relatively…