AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Growth Strategy Can Trump Income Investing.(INVESTOR EDUCATION)(INVESTOR'S CORNER)
Byline: JUAN CARLOS ARANCIBIA
The idea behind income investing sounds logical: Buy bonds and dividend-yielding blue chip stocks, and live off the guaranteed income.
But just how big an income can you expect going that route? Government bonds are paying less than 5% interest. Annualized dividend yields are seldom higher than that.
If you plan to derive your regular income that way, it takes heavy sums to produce acceptable returns. There's also inflation, which reduces real returns every year. Income investing also means that investors face the risk of bond issuers defaulting.
With blue chips, there's no guarantee with dividends, either. If a company starts to struggle, it may cut or eliminate its dividend.
Even worse, by then the stock could be down considerably. A dividend is unlikely to cover your losses if you hold through a downturn of 20%, 30% or more.
To provide an income stream, investors should consider buying growth stocks.
- Research and Markets: New Book 'Larger Image Income Investing Today: Safety &...
- Press release article from: Business Wire May 3, 2007 700+ words
...c55847) has announced the addition of Larger Image Income Investing Today: Safety & High Income Through Diversification to their offering Income Investing Today Income Investing Today details a safe alternative to the downside risks...
- Community Capital Management Releases 'Green Fixed Income Investing' Report.
- Press release article from: PR Newswire July 15, 2009 700+ words
...a new white paper on "Green Fixed Income Investing." The report aims to help investors...Environmental benefits of green fixed income investing -- Types of market-rate, green...investments -- Incorporating green fixed income investing into a portfolio "Given the recent...
- Supplement: Fixed Income - Q&A - Different approaches to fixed income investing.
- Magazine article from: Pensions Management November 1, 2002 700+ words
...market falls? 2. Which areas of fixed income investing do you think have been neglected by...passive or active approach to fixed income investing and why? The answers Nigel Loweth...believe that an active approach to fixed income investing offers investors the opportunity to...
- ANDREWS NAMED HEAD OF FIXED INCOME INVESTING AT STEIN ROE & FARNHAM
- Press release article from: PR Newswire January 12, 1995 700+ words
...William D. Andrews has been named director of fixed income investing at Stein Roe & Farnham, according to Hans P. Ziegler...is responsible for all Stein Roe & Farnham fixed income investing, overseeing a staff of portfolio managers and research...
- SOCIETY ADDRESSES FIXED INCOME INVESTING
- Press release article from: PR Newswire March 18, 1993 700+ words
...rated in the top percentile for the past several years by John Nuveen and Company, and will give his viewpoint on fixed-income investing in an uncertain economy. The Heritage Society is a group of professionals whose expertise has enabled clients to provide...
- Broad global and international funds: Overseas, income investing's the way to...
- Magazine article from: Investment News March 4, 2002 700+ words
Broad global and international funds Overseas, income investing's the way to go GLOBAL FLEXIBLE PORTFOLIO % CHANGE YTD 1-year 3-year TOP 10 Prudent Safe Harbor No Load 3.97 9.58 N...
- CBRS's Guide to Conservative Fixed-Income Investing
- Magazine article from: CA Magazine Anonymous November 1, 1996 700+ words
CBRS's Guide to Conservative Fixed-income Investing BY THE CANADIAN BOND RATING SERVICE 1 Westmount Square, Ste. 1350, Westmount, PQ H3Z 2P9 246 pp. $24.95 + $3.50 shipping...
- Buyers get tips with investing guide.(David Aaron Partnership guide on income...
- Magazine article from: Financial Adviser October 9, 2002 700+ words
A NEW guide by IFA firm David Aaron Partnership is offering private investors tips on income investing. The guide describes how investors can obtain a tax-free income of 10 per cent a year or more without much risk and despite...
