Home>Topics>>Don't Let Dividend Yield Drive Your Investment Decision
Don't Let Dividend Yield Drive Your Investment Decision
Seeking Alpha Editors' Picks stocks
Sat, 16 Feb 2013
By Alan Brochstein , CFA: With interest-rates at generational lows, many investors are motivated if not desperate to find alternatives to bonds. While equities can be a great income-generation alternative, investors can take on more risk than they realize by chasing yield. When a dividend-payer ...
Morningstar's Eric Jacobson outlines three short-term bond funds that can protect against rate sensitivity, but mind the risks as such funds aren't cash substitutes.
The Dodge & Cox Income manager discusses the fund's ongoing rate-risk mitigation, recent reduction in agency mortgages, and non-U.S. dollar-dominated picks.
Morningstar's Eric Jacobson discusses the history and re-emergence of flexible bond funds, sizes up the offerings today, and offers tips on incorporating them into a portfolio.