INVESTING UPDATE
June 15, 2007
Dividend Stocks - Yields have increased in 2007 on dividends offered by companies in the S&P500 Index.Examples of large companies with strong earnings which pay dividends include: US Bancorp (USB) 4.61%, Verizon (VZ) 4.30%, Citigroup (C) 4.10%, AT&T (T) 3.64%, and Pfizer (PFE) 4.31%.
Money Funds - GE Capital is offering their GE Interest Plus Notes which yield 5.43% on balances of over $50,000 and have limited check-writing features. These notes are uninsured. GE Capital is rated AAA+ by S&P.
Exchange Traded Bond Funds - traded on the NYSE like a stock these funds offered by iShares are indexed like a mutual fund index but with lower expense ratios than a mutual fund. The iShares 1-3 year Treasury Bond Fund(SHY) is currently yielding 4.65%.
CD Auction - Zions First National Bank has a daily live CD auction allowing CD investors to bid on CD rates. Recent winning bid on 1-year CD was 5.48% APY.
Mutual Fund money market - TIAA-CREF MMF (5.24%) and Harbor MMF (5.05%) both offer investors a mutual fund money market with low minimums, check-writing capabilities, and competitive yield. Mutual fund money markets invest in short-term government-backed or highly-rated securities and aim to achieve a $1 net asset value at all times.
U.S. Treasury Securities - 5.20% yield on the 10-year Treasury Bond marking its highest level since August 2006.
everbank.com is offering investors the chance to diversify their portfolio by buying CDs denominted in foreign currency. Depending upon the country these CDs may pay interest at a higher rate than we find in the U.S. Everbank is a FDIC-insured bank but principal invested in WorldCurrency CDs is not guaranteed as a currency can fluctuate when converting back to U.S. dollars. Visitors to money-rates.com have reported good results with these CDs as a way to diversify their portfolio internationally.
