What to Make of Corporate Bonds Now

As I’ve made clear plenty of times before … I consider solid dividend-paying stocks to be the best long-term income investments on the planet.

But I also keep a watchful eye on other asset classes, including the various flavors of bonds.

That’s because bonds both compete with dividend stocks for investment dollars and can also afford an income portfolio with healthy diversification.

If you’re a Dividend Superstars subscriber, you know that I often talk about bonds in your monthly issues. But the last time I mentioned them here in Money and Markets, was back in May.

My conclusion then: I said it looked like a…

TS&W-Claymore Tax Advantaged Balanced Fund: Diversified Profit Play with a High Yield

Last week was a very important one. The U.S. Treasury placed a record level of debt, the Federal Reserve announced it would not expand its monetary easing, and we got many top players opining about the economy.  In addition, we are facing the uncertainties about ‘Cap and Trade’ legislation and the healthcare reform.  And to cap it all, we are about to close the first half of 2009, with all the consequences in terms of portfolio adjustments that need to take place.

The Treasury debt placement was well received by the markets.   We saw these issues amply oversubscribed and trading well…

How to Double Your Gains with Half the Risk

The market just capped off a six week rally. Almost no sector was left behind. Commodities, banks, technology…everything is up. Even shares of embattled commercial real estate companies have started to rebound.

The wild market swings have most investors just as wary as when the market was setting new lows. After six weeks of steady upswings, there still aren’t too many believers in this rally. The mainstream media echoes investor sentiment.

BusinessWeek questions “Is the rally on strong footing?”

Canada’s Globe and Mail advises, “Don’t get your hopes; it’s a dead cat bounce.”

The Financial Times reports Duncan Neiderauer, CEO of NYSE Euronext, said, “The real money…

Buffett’s Favorite Income Investment

In 1977, a newspaper from Buffalo sued Warren Buffett.

At the time, Buffalo had two newspapers. Warren Buffett had just bought the Buffalo Evening News. The Buffalo Courier-Express was worried Buffett was trying to run it out of business to get a monopoly on Buffalo’s advertising revenue.

The judge agreed and ordered an injunction against Buffett’s newspaper.

"There are only two newspapers now," said the judge. "If [Buffett's] plan works as I find it is intended to work, there will be but one left."

Before the Internet and local television broadcasting, a single newspaper in a medium-sized town like Buffalo was a great business.…

Stock Dividends: Eliminating the Reasons Your Investments Fail

Believe it or not, when it comes to the stock market, most investors prefer glamour to profits.

Why do I say this? Tell the average investor about a company with a cutting-edge technology, an exciting Phase III drug or a new gold strike and they’re all ears.

But tell them about a blue-chip stock with steady sales, a big order backlog and rising stock dividends and they’re more likely to stifle a yawn.

That’s unfortunate. Because, contrary to what most investors believe, innovation is not always a great predictor of business success. As Andrew Carnegie famously said, “Pioneering don’t pay.”

Nor is a young…