Within the dividend blend, I allocated 20 % to fast growing Investment A and 80 % to high
yielding investment B. However, I allocate only 50 % to this dividend blend.
You can improve performance by including a higher
yielding Investment B with a (possibly) lower growth rate.
In this sensitivity study, I introduce a lower
yielding Investment B that has a stable or slowly growing dividend amount.
Not exact matches
The fund invests primarily in
investment grade debt securities, but may invest up to 10 % of its total assets in high
yield securities rated
B or higher by Moody's.
TAXABLE BOND FUNDS:
B - CHY - Corporate High -
Yield Bond: Invest generally in corporate bonds rated below
investment grade.
For example, investors might use the iShares iBoxx $ High
Yield Corporate Bond ETF (HYG) to gain access to greater credit risk through an ETF focused on bonds rated BB and
B, and the iShares iBoxx $
Investment Grade Corporate Bond ETF (LQD) to gain access to less credit risk through an ETF focused on bonds rated A and BBB.
CYS
Investments (CYS) had an eventful week, first announcing Q1 EPS of $ 0.24, surpassing estimates of $ 0.22, mainly driven by higher asset
yields, while book value fell -11.6 % to $ 7.41 (0.87 x P /
B).
As an
investment actuary, I've had to develop models of the full maturity / credit
yield curve — maturities from 3 months to 30 years (usually about 10 points) and credit from Treasuries, Agencies and Swaps to Corporates, AAA to Single -
B.
Investment B will have an initial dividend
yield of 12.2 % and a growth rate of 2 % per year.
I assign
Investment B an initial dividend
yield of 6.1 % and a growth rate of 2 %.
The highest
yielding investment (Investment B) has an initial yield
investment (
Investment B) has an initial yield
Investment B) has an initial
yield of 6.1 %.
I assign
Investment B an initial dividend
yield of 6.1 % and growth rates of 2 % and 4 % per year.
If you want to pick your own non-core high -
yield North American corporate bond fund, TD offers the TD High Yield Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian do
yield North American corporate bond fund, TD offers the TD High
Yield Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian do
Yield Bond Fund, which focuses mainly on BB and
B rated issues at the higher quality end of below -
investment grade and mostly hedges its U.S. currency exposure back to the Canadian dollar.
ETF initial dividend stocks,
Investment B has a high initial
yield.
20 % stock A / 80 %
Investment B.
Investment B yields 8 % plus 2 % growth.
Investment B's high initial
yield is problematic.
I credited
Investment B with a 6 % initial
yield and zero growth, similar to a corporate bond or a Single Payment Immediate Annuity for a younger retiree.
30 % stock A / 60 %
Investment B.
Investment B yields 8 % (no growth).
But Company A has a lower
yield, which means Company
B could be a better
investment if income is important to him.
The best combination of the initial dividend
yield and growth rate of the Stock A type
investment depends on the (initial dividend
yield and) dividend growth rate of the type
B or C
investment.
The best choice for Stock A will vary depending upon the details of the higher initial
yield investment, type
B or C. Have fun.
, Income Stream Allocator, Using the TIPS Income Stream Allocator
B, Income Stream Allocator Examples, Dividend Based S&P 500 Allocation, More Income Stream Allocator Examples, Many Alternatives, Botched Early Retirement, Botched Early Retirement Special Example A-1, Dividend Baseline, Dividend Growth versus Liquidation, Capturing the
Investment Return, Initial
Yield versus Dividend Growth.
Investment B yields 6 % plus 0 % growth.
Investment B has an initial dividend
yield of 4 %.
Never in my life would I have considered buying a CCC junk bond at 110 to
yield 7 % (quick ratings guide: BBB =
investment grade, BB = fine company,
B = either a fine or a sketchy company the ratings agencies have no clue which, CCC = this will default just give it a few years, D = this defaulted like we said when we rated it BB uhhhh we're not good at this).
Corporate bonds rated Baa or triple -
B, the low end of
investment grade by Moody's and Standard & Poor's designations, offer the biggest
yield premium since the early 1930s, notes RBC Capital Markets.
The idea you're going to make windfall profits from plodding utilities is ludicrous: a) Like bonds, these safe stocks are rapidly becoming dangerous
investments due to
yield compression, and
b) any secular rise (let alone a step - change) in water costs will inevitably sqeeze them, not help them — governments will impede / forbid them to raise prices accordingly!
Investment B has a 6.1 % initial
yield and a 2 % per year nominal dividend growth rate.
Condition
B:
Investment A: 3.5 % initial
yield with a 10 % per year nominal growth rate.
The OAS (Option Adjusted Spread) of the
investment grade corporate rating sub-indices are tighter: AAA -LRB--6 bps), AA -LRB--2 bps), A -LRB--3 bps) and BBB -LRB--5 bps) while high
yield's BB and
B are flat and the CCC & below are 22 bps wider.
Investment B: 6.1 %
yield with 2.0 % per year nominal growth.
Eventually investors will reach a point though where they seek out riskier
investments / real assets / capital gains, because they've a) regained their confidence,
b) become so desperate in response to continued
yield compression, and / or c) become sufficiently fearful of actual / anticipated inflation.
«We definitely play in the
B and C space,» Braman said, noting that such
investments often offer a higher
yield for her company.
«MetLife lent a record $ 12.1
B on commercial properties last year as America's biggest life insurance company targeted high -
yield investments.