These 7 Companies' 13 Baby Bonds Are Among The Highest Yielding ETDs In The Marketplace

The market is continuing its march upward and many are wondering when the music will stop. The economy looks very good right now. In fact, many of the economic and employment metrics are better than ever, so I am not concerned about the immediate future. For the most part, I am a long-term investor as long as I own financially safe securities that pay reliable and sustainable distributions. In other words, I prefer to hold the majority of my investments in good and bad times.
That is easier said than done, but there are two things that allow me to become a long-term investor. One of the big factors is knowledge. The more I know about a company I own, the better off I am. It is comforting to see historical records and metrics. The second factor is that I am an income investor. I get paid regardless of the price of the security I own. There is nothing better than being able to get paid and to then re-invest back into the market to increase my income.
I try to build my portfolio on a strong foundation. That may mean investing in lower risk securities with lower yields. One such asset class that is available are exchange traded debt securities (ETD). Many investors simply call them baby bonds as they are similar to preferred stocks in that they have a par value of $25 and can be easily purchased through your online broker program. However, unlike preferred stocks, they are debts and pay out interest instead of dividends. The interest is ordinary income. Since they are a debt, they... Read more