Corporate bonds are a classic element of most simple investment portfolios. They tend to provide a superior return to savings accounts and government bonds, whilst containing less risk than investing in shares. Definition of corporate bond A corporate bond is a loan between a group of investors (the bondholders) and a company (the bond issuer). A corporate bond is an …
What is a Bond Coupon Rate?
When researching bonds, you will notice that each bond will state its coupon rate. Beware the coupon rate Below, I’ll explain exactly what a coupon rate is. But I’ll also explain what it is not. A trap that many new bond investors can fall into is confusing coupon rates with a rate of return. With some investments, such as a …
Definition of Bond (Investor Perspective)
The definition of a bond as an investment is as follows: What is a bond? A bond is an agreement between a borrower and a lender. From an investing perspective, the ‘owner’ of a bond is the person who is entitled to collect the repayment and any interest. This may not be the same person who originally provided the finance …
The Ultimate Guide to Investing in Corporate Bonds
Corporate bonds are perhaps not the most exciting investment opportunity available (see: how to invest in land or investing in commodities). This guide to investing in corporate bonds will explain why corporate bonds are nevertheless one of the most popular types of investments. For armchair investors to pension managers; the corporate bond has been generating income for investment portfolios for …
Psychology of Investing: 2. The Income Mindset
About the psychology of investing series This blog post forms part of a supplementary guide designed to be read alongside our comprehensive investing guides which explain from start to finish how to invest in various assets: How to invest in stocks & shares How to invest in property How to invest in land How to invest in commodities While these …
Do All Companies Pay Dividends?
This is a companion article to how to invest in shares which forms part of the free investing courses available on Financial Expert. If you follow dividend growth investing, or seek dividend income from the basic investment portfolio you’ve built, understanding which companies pay dividends will be crucial information you need. Do all equities produce dividend income? The simple answer …
When do Companies Pay Dividends?
Dividends are how companies distribute their profits to shareholders. For investors who desire an income from their investments (such as dividend growth investors), this is the most important part of stock-market returns. You might have many questions about the timing of dividends. When are dividends paid? Do all companies pay at the same time? How often do companies pay dividends? …
Is Your Share Portfolio Out of Date?
Legendary investors such as Warren Buffet follow the same principle as responsible dog owners; buying shares is for life. This mindset encourages us to think of buying shares as the start of a long journey. This is in contrast to those who treat the stock market like a game based on chance and timing. My view is that there’s no …
How to ‘Re-balance’ Your Investment Portfolio of Shares
If you’ve researched about how to buy shares online, you may have come across the concept of ‘re-balancing’. This isn’t a new Yoga pose, nor is it as difficult as walking a tightrope! Re-balancing is actually a simple way to manage your risk after you’ve built a basic investment portfolio. Investing is rarely ‘Click and Forget’ Unless you have invested …
When Should Investors Buy Shares?
Many savers understand that shares are a good investment, but still hesitate before making their first purchase. The stock market can move upwards and downwards at a frightening pace – they’re certainly risky investments over the short term. When watching from the sideline, with a pile of cash at the ready, investors ponder: ‘Is now the right time to invest?’ …