Author Topic: Looking for high yield conservative investment  (Read 2806 times)

kawikaho

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Looking for high yield conservative investment
« on: February 16, 2009, 04:49:14 AM »
Anyone have any suggestions for a high yield conservative investment?  I'm looking for something bond like, but pays out over 5%. 


StubbleJumper

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Re: Looking for high yield conservative investment
« Reply #1 on: February 16, 2009, 05:07:20 AM »
Please define the word "conservative" and describe your investment horizon.

A treasury bond would be 99.999999% certain that you'll get your money when and as defined in the bond terms.  A CD might be 99.999% sure that you'll get all your money as planned.  Is that conservative?

There are corporate bonds out there that might be >90% but <100% of getting your money back as planned.  Is that good enough?

ORH.A probably has a risk of financial failure below 90%, but there is much uncertainty about the timing of getting your capital back.....you might end up underwater for a couple of years before the price snaps back in line.  Does this fit your time horizon?  Is 90% probability of getting your money back good enough?

SJ

Uccmal

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Re: Looking for high yield conservative investment
« Reply #2 on: February 16, 2009, 05:35:41 AM »
One of these might fit the bill: RY; BNS; TD; BMO; CM - all listed in New York as well.  Paying dividends above 6% in depressed Canadian dollars - should the CDn dollar rise your dividend will rise.  BMO is priced for a dividend cut which may not happen. 
I hold BMO, RY and TD and I am opportunistically picking up more of all of these, except CM.  I am also a customer of most of the above as are nearly all Canadians - oligopoly sactioned by our federal government.   

http://business.theglobeandmail.com/servlet/story/RTGAM.20090215.wrgseven16/BNStory/Business/home
GARP tending toward value

misterstockwell

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Re: Looking for high yield conservative investment
« Reply #3 on: February 16, 2009, 07:48:48 AM »
How about Diageo(DEO), which just raised their dividend, yielding ~6%. There will always be Guinness(thank goodness).

kawikaho

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Re: Looking for high yield conservative investment
« Reply #4 on: February 16, 2009, 02:13:11 PM »
I was thinking of a bond fund.  I just heard of a MUNI bond fund that is paying out near 6% called MHF.  Any other suggestions? 

SJ, don't you mean 10% risk of financial failure?

StubbleJumper

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Re: Looking for high yield conservative investment
« Reply #5 on: February 16, 2009, 02:34:11 PM »
Yep, risk of financial failure below 10%... :o

Junto

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Re: Looking for high yield conservative investment
« Reply #6 on: February 16, 2009, 07:15:38 PM »
A good muni fund is NAD. Also HRPPRB is a good preferred stock. There are plenty of options out there.