STX

An Alternative High Income Bond Strategy

If it is safe high income you seek, this alternative strategy may be worth considering. Rather than investing only in big-dividend stocks, this article highlights three specific corporate bonds, and an advanced-strategy to generate high income with relatively low risk. We believe these three specific bonds offer an attractive risk-versus-reward opportunity to boost your income and diversify your portfolio.

This Company's Bonds are Better Than Its Stock

This week’s members-only investment idea is an investment grade corporate bond with an attractive yield (nearly 6%). The stock of this company also offers a high yield (the dividend yield is over 5%), but we believe the risks associated with the stock are too high, and we actually prefer the bonds instead. Specifically, the long-term viability (>10 years) of the company is uncertain which makes the stock very volatile, but we believe the company will still easily generate enough cash flow to support the bonds...