GOOD - Deep Fishing For Bargains: 2 Preferred Stocks Up To 9% Yield
2024-05-24 08:30:00 ET
Summary
- Traditional fixed-income recommendations hinder portfolio performance, failing to outpace inflation or meet income needs.
- Our fixed-income allocation features high-yield, attractively discounted preferred securities.
- We highlight two quality preferred stocks poised for excellent total returns and consistent income.
Co-authored with Hidden Opportunities.
The 60/40 stock-bond portfolio advice is often misrepresented and misunderstood. Investors simply assume that obtaining a diversified exposure to bonds would satisfy the 40% requirement for portfolio defensiveness and stability during challenging economic conditions. You could satisfy your fixed-income requirement using index funds like Vanguard Total Bond Market Index ( VBTLX ) or Fidelity U.S. Bond Index ( FXNAX ), but note that even though these have more or less maintained their price levels over time and given you the so-called capital preservation, they have delivered abysmal total returns....
Deep Fishing For Bargains: 2 Preferred Stocks Up To 9% Yield