investingfromtheright

I am retired and take educated guesses on all things financial.

January 18, 2007

January 19, 2007: Boost your yield






The Titan (largest), Delta IV (brand new) and the anti-missile (yes...it works)
all circa 2006





With certainty, there will be higher yield ETFs being "launched" soon. Until then, what does the investor do to "boost" portfolio yield but not have a security "explode" causing financial "fallout"?

Here are a few ideas:

GE Interest Plus yielding up to 5.43% with stable principal. www.geinterestplus.com

Six month T-bills bought at the US Treasury web site www.publicdebt/treas.gov/

Advent Claymore Convertible and Income Fund at 28/share (AVK) 9.0%
Ramco-Gershenson Property Trust at 36/share (RPT C) 6.3%
Flaherty and Crumrine/Claymore Fund at 21 (FFC) 7.2%
AON Corp. 8% Corts Preferred at 26 (KVW) 7.8%
General Motors 7.375% Pfd. Sr. Notes at 18/share (BGM) 9.8%
SLM Corp. Adjustable Rate Pfd. at 102/sh (SLM B)6.1%

iShares Intermediate Credit Bond Fund at 100/sh (CIU) 5.43%
Powershares Financial Preferred Portfolio at 25.07/sh (PGF) varies
WisdomTree Div. Index Europe/Asia/Australasia at 61.50/sh (DWM) varies

Vanguard High Yield Fund (VWEHX) 8.50%
Aegis High Yield Fund ((AHYFX) 9%
Fidelity High Yield (SPHIX) 9%
note: mutual fund yields are approximate due to security churning

You may also take a string look at GMAC SmartNotes maturing in 35 months or less. Some are oddly priced on a day to day basis and you could get lucky. Plan on holding these notes to maturity.

High yield fixed income securities can be found. I am beating a dead horse by recommending the Sirius issue again (see yesterday's post).

It is my view that interest core inflation will rise this year, but not by a great amount. We all know that if interest rates rise, fixed income securities will fall in price in reaction. Thus, be selective and assume that "the best laid investment plans" can fail.

Let's see who can "propel" themselves to "rocket" into the Super Bowl this weekend.

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