Common Stock Dividends: What Are They Worth?

Evaluating Dividend Safety With the Free-Cash-Flow Payout Ratio “Cash is king” is a common refrain in investing and investment analysis. Just because a company generates positive earnings doesn’t mean it will succeed. It still needs to generate cash to survive. Thus, whether a company can generate sufficient cash is what matters to stakeholders. Closed-End Bond…

 

Comparing the 2018 Melt Up to the 1999 Bubble

“‘Melt Up’ Rally Propels Dow Above 26,000 as Fear Turns to Greed” proclaimed The Wall Street Journal this morning. The headline comes as optimism in our weekly sentiment survey is staying at an unusually high level. Even outside of the office, more people have been bringing up the market’s run to me in conversations. The…

 

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…

 

It’s Almost May – Should You Stay With Stocks or Go?

With May starting in just a few days, those of you who are sensitive to the market’s semiannual cycles may be reciting the chorus of The Clash’s 1982 hit, “Should I Stay or Should I Go?” A better question would be “Should I Stay or Should I Rotate?” Staying would mean not making any changes…

 

Closed-End Bond Funds Versus Individual Bonds – A Case Study

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What Bond Calls Mean for Your Cash Flow In a falling interest rate environment, or in one where interest rates have fallen in the not-too-distant past, it is especially important for investors to understand bond calls if they own individual bonds, bond funds, annuities…

 

AAII Journal April 2017 Issue Now Available

Feature Article: Portfolio Strategies » Factors Allow Investors to Think Differently About Diversification Tilting a portfolio to a small number of factors, including value and size, can increase returns while at the same time reducing risk. In This Issue: Portfolio Strategies » Asset Allocation, RMDs and Portfolio Survival A diversified portfolio not only increases return…