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…

 

Why Buy Bonds If Interest Rates Will Rise?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:` Bond Pricing Made Simple Many investors know that a bondholder receives periodic interest payments from the bond issuer and that principal is usually not due until the bond matures. But when asked to explain the difference between coupon and yield, or what the risk of a…

 

Where Is the Bond Armageddon?

On Wednesday, The Wall Street Journal published an article headlined, “Rock-Bottom Bond Yields in Europe Hit All-Time Lows.” Thursday morning, a headline on The Financial Times’ website declared: “Relentless: Bund Yields Take Fresh Step Down.” The headlines were written in reaction to what is occurring in global bond markets. Earlier today, yields on the 10-year…