- Page 4/4
- Next Page
Where to find a bond that pays 3%? There's no value in regular bonds which do poorly during rising rates. High-yields are one of the few fixed-income assets do, because they're short-duration. Don't buy a Canadian-only high-yield bond fund, because you'll get mining, oil and gas bonds with a high default risk if the commodity price falls. So, own U.S. high-yield bonds (bond fund)--which hedges the currency in case the U.S. dollar drops and you get crushed. Such a fund will generate 5% yield over the next five years in terms of income. Stick to a five-year horizon.
Should I buy high-yield bonds as interest rates rise? Don't expect them to necessarily increase in value. Instead, look for your distributions to increase over time, because you always want to get your principle back. As your old bonds mature and you buy new ones at higher yields, you'll get higher interest returns.
They have a few cancer drugs out of the pipeline that are growing. That said, their shares aren't cheap enough to step in. The problem is if the FDA decides to change their labelling that would turn a $5-billion drug into a $1-billion one. The dividend is secure. While all these companies are making money, the struggle lies in earnings growth.
Trading at only 12x earnings. While other Wall St. banks have reduced traded derivatives, Goldman hasn't. A huge opportunity. Margins will increase in this area, because of less competition. The number-one investment bank in the world, benefitting huge from European M&A. Expects 50% earnings growth in three years. (Analysts' price target $270.63)
Has US$35 billion in net cash. Raised their dividend 14% recently and he foresees double-digit increases for years to come. They're number one for 20 years in their four major businesses. A major player in cyber security. Well-managed company which keeps buying back stock and increasing their dividend. They will repatriate a large part of its cash. (Analysts' price target $48.30)
