What does it mean to invest for yield?
Sofia asks:
Also where can I find the IPO’s in the Wall Street Journal? Are the IPO’s posted everyday?
Also where can I find the IPO’s in the Wall Street Journal? Are the IPO’s posted everyday?
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Investing for yield means you pick stocks or bonds based on high dividends. For example, Chevron pays approximately 3% dividend, and you’ll receive these dividends regardless of what the stock price does. It’s basically safe, and free money. If you invest for capital gains, you are hoping the stock price increases, and sell for a profit, and don’t care if the stock doesn’t pay a dividend.
Investing for yield can also give you capital gains of course, and good stocks achieve both yield, and capital gain.
I don’t know much about IPOs, sorry.
To invest for yield is to purchase something that offers a defined rate of return, eg; a CD @ 4 %, corporate bond @ 6.25%, etc, etc. This is as opposed to investing for growth/price appreciation (stocks, commodities, etc.)
IPO’s aren’t listed daily because they don’t happen daily. What’s known as the “syndicate” calendar (a posting of pending IPO’s) can be found on E-Trades’ web site, but you may need an account to acess this info. Try yahoo finance, it offers quite a bit of useful info..
There are wo ways to make money: yield (when the investment produced a stream of paymnets) and capital gain (when the price goes up and you sell it for more than you paid)
Evaluating IPOs is for experts. A few that have gone thru the roof have gotten a lot of publicity, but those people got lucky.