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Dividend Stocks are Not a Bond Substitute

The following is a guest post by Ben Carlson from A Wealth of Common Sense. If you would like to submit a guest post to The Dividend Ninja, check out our guest posting guidelines. “Compare this with a 50% drawdown in stocks in the past bear market and you can see that bonds and stocks do not have the same characteristics for loss.  Interest rates would really need to spike higher in a very short period of time to equal stock losses.  And unfortunately, rates can stay low for long periods ...

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Why Should I Invest in Bonds? 3 Reasons Investors Are Spooked

These days, bonds are getting a bad name. But, that shouldn’t be the case. You should invest in bonds. Stock markets are off to a tremendous start, dividend stocks are outperforming, and not surprisingly investors are losing their confidence in government issued bonds. There are three main reasons why investors are spooked with bonds. First and foremost, are the sovereign debt woes in Europe and the antics of the U.S. government to raise the debt ceiling, which sent ripples around world markets ...

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The Risks of High Yielding Investments that Investors Need to Know

The following is a guest post from Ben Carlson at A Wealth of Common Sense. Ben writes about personal finance, investments, investor psychology and using your common sense to manage your money.  You can follow him on Twitter (@awealthofcs). If you missed part one of my series on rising interest rates, please read What Happens to Bonds When Interest Rates Rise. Rising Interest Rates Affect on High Yield Investments Rising interest rates are a hot topic in the ever changing investment landscape ...

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Bond Certificate

What Happens to Bonds When Interest Rates Rise?

The following is a guest post from Ben Carlson at A Wealth of Common Sense. Ben writes about personal finance, investments, investor psychology and using your common sense to manage your money. If you’d like to write a guest post, check out our guest posting guidelines. Don’t Try to Predict Interest Rate Movements There is one recommendation that I received early in my wealth management career that has served me well: do not try to predict interest rates. There are way too many moving ...

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