You CAN Lose With Bonds

Dividend Safety Signs and Warning Flags Many investors have sought shelter from the stock market storm in more mature dividend-paying companies since the income from these firms provides at least some positive return in an otherwise bleak environment. What signs can you look for that indicate the safety of a company‚Äôs dividend payment stream? Choosing…

 

Using Cash and Short-Term Bonds to Avoid Taking Losses

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Analyzing a Stock by Its Dividend and Shareholder Yield One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is…

 

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…