Relatively small investments in increased tower height can
yield high rates of return in energy production.
If mortgage interest rates were higher, paying down this debt would make more sense, but with rates at about 4 percent, investing that money could
yield a higher rate of return.
But, the good news is that we already know some of these programs are quite effective and
yield a high rate of return.
This fact from the World Bank may surprise you: Educating girls
yields a higher rate of return than any other investment in the developing world.
Your school's investment in the Parental Involvement Toolbox
yields a high rate of return.
With a SPDA - 7 annuity your money grows for seven years,
yielding a higher rate of return.
CDs: Certificates of deposit are a special type of non-liquid, high - yield savings account that
yields a higher rate of return as long as account holders keep their money locked away on deposit for a specified period of time.
Not exact matches
If interest
rates rise and push that risk - free
rate of return higher, then those dividend stocks and
high -
yield bonds are vulnerable.
Also, as bond
rates rise, some
of the money that migrated over from the bond market in search
of higher yields will
return to the safety
of fixed income.
«The Theranos fingerprick collection system
yields higher sample rejection
rates, and their testing services
return results that mostly agree with other services with the exception
of lipid panels,» write the authors.
These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources
of incremental infrastructure finance; (iii) not encourage at all the
highest return maintenance projects like fixing potholes that do not
yield a pecuniary
return for investors; and (iv) by offering credits at an unprecedented 82 percent
rate, invite all kinds
of tax shelter abuse.
All told, we see another coupon - driven year for
high yield with total
returns of about 6 % possible as spreads tighten in line with anticipated modest increases in interest
rates.
The «search for
yield», i.e. for better
return on financial investments than the declining interest
rate, thus led to the series
of bubbles & bursts: deregulated savings & loans (immediately),
high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).
These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources
of incremental infrastructure finance; (iii) not encourage at all the
highest return maintenance projects like fixing potholes that do not
yield a pecuniary
return for investors; and (iv) by offering credits at an unprecedented 82 per cent
rate, invite all kinds
of tax - shelter abuse.
The purpose
of this screening process will be to identify companies that have a
high expected dividend growth
rate combined with a starting
yield that would produce greater
returns.
ZIRP and NIRP policies are forcing investors out
of cash and near - zero or negative
yielding «havens» and into slightly
higher yielding investments in which the potential
rate of return does not even remotely reflect the degree
of risk being taken.
In the long run both types
of investment create capital that can
yield substantial positive
rates of return (above the current 30 and 50 year real bond
rate) and result in both
higher productivity and stronger labour force growth.
While the prospect
of higher interest
rates will keep investors on edge, it's not like we're
returning to double - digit levels or the Fed is moving its terminal rate.So even the uptick in ten - year
yields to 3 % or even 3.25 % is unlikely to kill the equity market rally as the benefits from fiscal stimulus should continue to feed through the markets.
One factor supporting the Australian dollar over the past couple
of years has been that interest
rates right across the
yield curve in Australia, and perceived
returns on other assets, have been
higher than those in a number
of other countries, particularly those which experienced a recession and a collapse
of share prices in the early part
of this decade.
These public - private investments can
yield private investors very
high rates of return, while leaving the government take much
of the risk.
Importantly, when a preferred share is trading at a
high current
yield relative to the market
yield, the investor receives a measure
of protection from the impact
of rising interest
rates (or, if we're focused on real
returns, the impact
of rising inflation).
Based on these categories, mutual funds receive rankings based on
highest -
rated value,
highest -
rated growth, daily gainers and losers, category
of highest and lowest
returns,
highest -
rated large - cap funds,
highest -
rated mid-cap funds, small - cap funds,
high -
yield bond funds,
high and low risk foreign funds, top year to date performers, analysis
of prior year's top performers and...
Dropping that percentage to 35 %
of moneyline bets
yields an even
higher rate of return of 3.6 %, good for +118.8 units over that span.
The Bloomberg Barclays US Corporate
High -
Yield Bond Index is an unmanaged broad - based market - value - weighted index that tracks the total
return performance
of non-investment grade, fixed -
rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.
And
high -
yield money markets with 4.5 % -5.0 %
yields are significantly
higher than the historical
rate of return for cash instruments (3 %).
Still, the availability
of a mobile app on this
high -
yield account makes it our top choice for people who want on - demand account management as well as a good
rate of return.
As for their total
rate of return performance, these indices are close month - to - date as investment grade
returned 0.31 % and
high yield is at 0.34 %.
We can (and have) capitalized on a wide range
of opportunities in the bond market, including in
higher and lower quality bonds, strategic and
high -
yield bonds, floating -
rate securities and even total -
return funds, which aren't fully invested in bonds.
As Figure 1 shows, the Bloomberg Barclays US Corporate
High Yield Bond Index posted positive
returns during rising -
rate periods, averaging a
return of 8.86 % while the Bloomberg Barclays US Aggregate Bond Index was almost entirely in the red with an average
return of -1.41 %.
By sticking to companies that have the means to pay
high dividend
yields, you not only get the added bonus
of a regular paycheque from your portfolio (now electronically deposited in your investing account), but studies show that you'll likely enjoy a
higher rate of return over the long run than the market typically provides.
Conversely, if conditions improved, or under the same conditions ACME company issued bonds with a
higher coupon /
rate of return, the market might well bid the price
of the bond up from its PAR / issuing value, resulting in a lower
yield.
As
rates rise and investors can realize a decent
return in legitimate
high yield investments like CDs and money markets, many expect investors to get out
of the risk trade and back into fixed FDIC - protected instruments.
These types
of low -
rated bonds are the same as the
high -
yielding and speculative bonds, because they carry the
highest risk and can bring the
highest return on investment, if they are paid back at maturity.
While the portfolio
of high yield bonds may offer additional
return potential,
high yield bonds are subject to substantial interest
rate risk.
And while rising
rates are bad for bonds and bond funds in the short - term, climbing
yields can actually boost
returns on a diversified portfolio
of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at
higher rates.
High -
yield bonds, also referred to as «junk bonds,» offer
higher rates of return, and therefore carry a
higher rate of risk, than investment grade bonds.
In a balanced economic environment, longer - term investments demand a
higher rate of return than shorter - term investments, thus the upward sloping shape
of the
yield curve.
If we assume longer term EPS growth
rates of 15 % or so and the current
yield of 1.5 %, PH could easily produce longer term annual total
returns in the
high - teens.
It is invested primarily in the credit market, not so much in government bonds because government bond
yields are so low, but we're looking for absolute
returns even if interest
rates go up, so some
of the portfolio, a significant piece
of it actually, is floating
rate, so if interest
rates go up, you just get
higher cash flows, which will support
higher returns, and the rest
of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute
returns.
The one thing that really stands out is this: dividend
yields vanish if you assume a
high rate of (total)
return throughout a decade.
High -
yield bonds are into their second year
of sub-par
returns, and much
of Canada's preferred share market (fixed floaters and
rate resets) has declined approximately 25 per cent in the past year.
If anything, it's even more dangerous to stretch for loftier
yields and
returns today given the wild swings we've recently experienced in stock prices, the iffy shape many economies are in around the globe and the possibility
of higher interest
rates in the not - t0o - distant future.
These days, many
of us question the interest
rates that are earned in these popular
high yield savings accounts — could you even consider these to be «
high yield»
returns?
Extension risk For mortgage - related securities, the risk that rising interest
rates will slow the assumed prepayment speeds
of mortgage loans, delaying the
return of principal to their investors and causing them to miss the opportunity to reinvest at
higher yields.
Class A shares with sales charges performance reflects the maximum 5.5 % sales charge, with the following exceptions: Class A shares
of Hartford Emerging Markets Local Debt, Hartford
High Yield, Hartford Inflation Plus, Hartford Municipal Opportunities, Hartford Municipal Real
Return, Hartford Strategic Income, Hartford Total
Return Bond, Hartford World Bond, Hartford Schroders Emerging Markets Debt and Currency, Hartford Schroders Tax - Aware Bond, Hartford Schroders Emerging Markets Multi-Sector Bond and Hartford Schroders Global Strategic Bond reflect a maximum 4.5 % sales charge; Class A shares
of Hartford Floating
Rate and Hartford Floating
Rate High Income reflect a maximum 3.0 % sales charge; Class A shares
of Hartford Short Duration reflect a maximum 2.0 % sales charge.
Over the most likely horizon, what
rate of return do you want to earn on your money, relative to money market
rates and
yields on
high quality long bonds?
«on page 144, O'Shaughnessy prints tables showing the Compound Annual
Rates of Return by Decade for the strategies
of High & Low Price to Earnings,
High & Low Price to Book,
High & Low Price to Cash Flow,
High & Low Price to Sales, and
High Yield.
This is on top
of the problem that when
high - quality long interest
rates are so low, it is typically a bad time to try to make money in financial assets, because
returns on risky assets are typically only 0 - 2 % percent
higher than the
yield on long BBB / Baa debt over the long run.
Consider your own investing strategy — if you can get a
higher rate of return from the relative safety
of bond
yields, would you not expect a
higher rate of return to take on the
higher risk
of stock investment?
In addition, he is a portfolio manager
of Putnam Absolute
Return 100 Fund ®; Putnam Diversified Income Trust; Putnam Emerging Markets Income Fund; Putnam Fixed Income Absolute
Return Fund; Putnam Floating
Rate Income Fund; George Putnam Balanced Fund; Putnam Global Income Trust; Putnam
High Yield Fund; Putnam Master Intermediate Income Trust; and Putnam Premier Income Trust.