Investing

A yield curve is a finance tool that shows the relationship between the borrowing interest rate and the maturity of a loan. The U.S. Treasury debt yield curve helps to determine the future...

If you have an investment account and invest in stocks, there are many ways to earn extra income every month from your existing investments and increase your gains year after year. With these...

Attempting to locate and structure high return investments for your portfolio? While viewed by many as a challenging task, there are simple fundamentals to properly selecting high return...

CanRoys (Canadian Royal Trusts) are companies which produce oil and natural gas. They are unique in that they pay very high dividends, because if they distribute their income to shareholders they...

High yield savings accounts with online banks are especially attractive when interest rates are low. Online banks often offer higher interest rates with lower minimum deposits, compared to local...

Whether you are purchasing bonds as a first time investor or a seasoned professional broker, it is essential to know a bond's yield. By using information such as the bond's coupon payment, face...

Yield-to-Maturity (YTM) represents the yield on an investment from now until it matures. This value is different from the stated coupon rate of a bond. The risk-free rate is a comparison point to...

Bonds are sold by corporations and governments to borrow money. Each bond has a face (or par) value that is the amount the issuer must pay back when the bond matures. Bonds pay a specified amount...

Did you know that you are bound to lose a ton of money simply by investing in the top dividend paying stocks? Sounds backwards but it is true. Some of the top stocks in terms of dividend yield...

Corporate and government bonds pay a fixed sum of money each year called the coupon rate. Although the bond issuer must pay the full face value to redeem a bond when it reaches maturity, the price...

Dow strategies articulate investment programs by categorizing the 30 stocks of the Dow Jones Industrial Average (DJIA) according to particular metrics, typically dividend yield. Dow strategies...

Dividends are payments in the form of cash or additional shares of stock made by companies to stockholders. Dividend yield is the amount of the payment expressed as a percentage of the value of...

For investors, performance--the return they get on their money compared to the risks they take--is the bottom line. The rate of return on a mutual fund has two components. One is yield and the...

Are you interested in earning some extra money by opening up some high yield investments? Part of becoming financially independent is having the insight to use any extra savings you may have to...

Money market mutual funds represent a multibillion-dollar investment segment. They are a primary source of liquidity for corporations, pension funds and individuals. Money market funds are liquid...

Finding the safest bond fund is a function of understanding what parameters of safety and income you need to receive when buying municipal bond funds. Income can be measured by yield. Safety can...

Stock investors can earn dividends as well as profit from the stock price of their holdings increasing. For many stocks, the dividend distribution is a significant portion of the total return...

Dividend stocks pay you, the investor, cash money every three months. Each fiscal quarter the company that issued the stock distributes it's profits to it's shareholders. These are great stocks...

Bonds are debt securities issued by corporations and governments. Investors purchase bonds to receive a steady income and possible capital gains if interest rates change. Bonds are marketable...

Investing in a high yield certificate of deposit (CD) provides a nice alternative to a traditional savings or checking account. Most regular checking accounts pay little to no interest on your...

Yield to maturity (YTM) is the annual rate of return expected for a bond held to maturity. The term also refers to the internal rate of return (IRR) on the bond--this is the most important...

There are many interest rate calculations that can be applied by investors to determine what returns they have received from their IRA accounts and what they should expect in the future. This...

Purchasing a high yield certificate of deposit (CD) is one of the safest investments you can make. Since certificate of deposits follow current interest rates, they may not always return the...

Bonds are a way of loaning money to an organization and getting your money back with interest. A bond is usually issued to reach a set amount of cash to fund a project or keep a company running....

Calculating bond maturity yields is a matter of following a pricing model based on net present value formulas. However, the issue is complicated by the fact that bonds might be priced to a call...

A high-yield money market fund is an investment pool that contains corporate and government bonds paying a relatively high rate of interest. These funds usually pay more than bank savings...

A high-yield money market fund is a pool of corporate bonds and other debt instruments paying a higher rate of interest than conventional savings accounts or U.S. government bonds. The funds are...

The yield curve is a representative graph of the rates of the same bond at a point of time. The yield curve normally runs from 1 to 30 years, though that may vary depending on the outstanding...

Many common stocks pay their investors dividends. The dividend amount paid is determined by the company's board of directors, and it can be raised, lowered or eliminated by the board at any time....

There are a ton of publicly traded companies that pay a quarterly or monthly dividend. But how do we go about finding the best dividend paying stocks? It is not as simple as running an online...

Often a stock's yield is given on financial websites, such as most internet trading sites. The yield is the percent paid in dividends per share price. Often, however, it is best to re-calculate...

Face it, no one's going to make a killing in this market. However, the average small investor can pick up a little change here and there without too much risk.

Bonds are like corporate IOUs in that they are a promise to repay a loan on a future date, and the bond issuers pay interest called coupon payments. The rating a bond receives is a function of the...

Successful investing takes some trial and error, and lots of research. Aggressive investors usually control their own investment portfolio, and often take the high risk high yield approach to...

For some stocks, the dividend is the major source of profit for an investor. The dividend yield for common stocks is a basic way to show the amount of dividend income to be expected from an...

Prior to the payout of a dividend, a company will announce or "declare" the payment of the dividend. This will include the amount of the dividend, the date of the payout, and the date that will be...

Many investors chase high yield strategies in an effort to boost their investment returns or supplement their income. While there are many viable investments with yields in the high single or low...

Credit quality, average maturity, yield and management are the important factors to consider when researching money market funds. Investors should understand that money market funds that hold to...

High Yield Bond funds are a great way to make a monthly income with low risk compared to stocks. I find stocks to be to risky for my taste, and you don't normally make money from them unless they...

Choosing preferred stocks requires knowledge of credit and the specific terms of the issue. Preferred stocks take many forms, and investors should be aware of the many choices they have. When...

Dividend stocks generally are stocks that pay dividends, although most stocks do. More important, "dividend stocks" refer to investor's picks for slow-growing, stable stocks that put out regular...

Dividends are periodic payments by a company to its shareholders. For some investors, dividends can be an important source of income. In the United States, dividends are typically paid quarterly...

An interest rate swap is an exchange between different cash flows. One cash flow stream is fixed and the other variable, but they both revolve around the current cost of money, or the interest...

DV01 sounds like the name of a drone aboard a spaceship, but it stands for the "dollar value of 1 basis point." A basis point is equal to 0.01 percent. An interest rate move from 8 percent to 9...

There are several yield calculations relevant to corporate bond pricing. Each one has a particular calculation relative to its use. While calculations to maturity can be derived on a spreadsheet,...

There is no single interest rate spread. Rather, many different spreads are calculated for a variety of purposes. Some are used to gain insight into the relative values of currencies, while others...

The dividend yield ratio is a financial ratio of the amount a company pays out in dividends divided by the current share price of the stock. Dividend yield is a way to compare unrelated...

Yield is commonly used to refer to return in the fixed-income world; that is, investors want stock with high returns and bonds with high yield. Yield to maturity is a comparison measure for the...

Learn how to Invest in High Yield Corporate Bonds. High Yield Corporate Bonds issued by corporations that do not qualify as "investment grade".