When it comes to bonds, D&I Daily agrees with Wall Street guru, Peter Lynch, when he says, “In bonds, you’re nothing more than the nearest source of spare change. When you lend money to somebody, the best you can hope for is to get it back, plus interest.”
If you’re drawn to bonds because of risk aversion, dividends are a far better choice. By identifying fundamentally strong dividend payers, a savvy income investor can get the safety of bonds, but with significantly greater yields.
One of the most fascinating developments of the stock market rally over the past few years has been the killer performance of companies with less-than-stellar financial situations. Companies with weak balance sheets have actually outperformed those with strong balance sheets. However, this…