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Investors like dividend stocks for their yields, but the equities' returns have been pretty dismal so far this year. "That's what is putting pressure on these [dividend] stocks, or maybe just keeping them from lifting." IPDP YTD line Dividend Performers ETF (IPDP) performance year to date When it comes to specific stocks, Gilreath likes two under-the-radar plays: Brady Corporation and ABM Industries . Brady, which manufacturers identification and health-care products, has a 1.7% dividend yield. Diversification in light of recession risk When it comes to dividends, investors should look for quality rather than quantity.
Persons: That's, Bond, Andrew Graham, Dave Sheaff Gilreath, Gilreath, Morningstar . Brady, Capital's Graham, Graham, Dow, Laura Mattia, Morningstar, George Gagliardi, You'd, I'm Organizations: Investment, Jackson, Capital, Federal Reserve, Brady Corporation, ABM Industries, Dow Inc, Dow, LyondellBasell, Shell, Coromandel Wealth Management, U.S Locations: San Francisco, Indianapolis, Sarasota , Florida, Lexington , Massachusetts
With the second half of the year now underway, investors may want to take another look at their fixed income portfolio. High yields have been a boon to income investors, as the Federal Reserve increased interest rates over the past year. "For more of our clients, we're looking to have the fixed income of the portfolio provide lower correlation and income," he said. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, generally prefers securitized assets such as asset-backed and mortgage-backed securities. "You can't think of high yield bonds in the same thought as Treasurys," said Cox of eToro.
Persons: James Franke, Sonal Desai, She's, We're, It's, Desai, Franke, Rothschild, Callie Cox, Greg Wilensky, Janus Henderson, Cox Organizations: Federal Reserve, Treasury, Rothschild Investment, Franklin, Janus, Janus Henderson Investors Locations: Treasurys, U.S, eToro
Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.
Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, , Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital
If the market gyrations and Silicon Valley Bank's failure are rattling your faith in stocks, there are places to look for safety. But for cash and bond allocations, T-bills – U.S. Treasurys with maturity of one year or less – might be the ticket. The rates will adjust and correct [at some point], and these short-term rates will go back to normal," he said. When buying bank CDs, investors should be mindful of the Federal Deposit Insurance Corp.'s coverage, he said. Hans Olsen, chief investment officer of Fiduciary Trust Company, highlighted short-duration, high-quality bonds are where it's at for safety.
Instead, it may be a good time to make adjustments to your portfolio or take some tax losses. For those with a long enough time horizon of five- or 10 years, or more, the sell-off could be an opportunity to buy the right stocks at a discount. Finding shelter For those worried about risk, stability can be found in the Treasury market. You might consider putting some of your holdings in Treasury bills, Treasury notes or Series I savings bonds. You can also get exposure to the Treasury market without owning the actual securities through a mutual fund or exchange-traded fund.
CNBC's Jim Cramer, on the other hand, bought 2-year Treasury notes for his personal portfolio. With short-term notes, investors can get the high yield without a long-term commitment. A direct purchase from the government You can buy Treasurys directly from the U.S. government through its website, TreasuryDirect.gov . Exposure through a bond fund You can also get exposure to the bond market through mutual funds and exchange-traded funds. For instance, a short-term Treasury bond fund could have issues with maturities ranging between one and three years.
The spike in short-term Treasury yields may have some investors thinking about adding the notes to their portfolio. CNBC's Jim Cramer, on the other hand, bought 2-year Treasury notes this week for his personal portfolio. Buying through a brokerage You can also purchase Treasury notes on the secondary market, going through a brokerage firm. For instance, a short-term Treasury bond fund could have issues with maturities ranging between one and three years. See below for four short-term Treasury funds.
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