When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...

There is a lot more to investing in bonds than simply looking at the stated, or coupon, interest rate. Many bonds are callable, which means that the issuing company has a right to buy the bonds back ...

Companies pay dividends when they distribute a portion of their earnings to shareholders. Dividends can be paid in cash or additional shares of the company's stock, usually on a quarterly basis. Not ...

Keeping your money safe is important, and risk-averse investors often turn to Treasury bills as one of the safest ways to invest money for short periods of time. With maturities that range from four ...

Yield calculation starts by dividing the coupon rate by two and the result by current bond price. Using a simple yield method can overlook gains or losses due upon bond maturity. Including potential ...

Earnings yields are calculated as earnings per share divided by share price. Earnings yield are best used in comparisons; a higher earnings yield is generally more favorable. Earnings yields can be an ...

Preferred stock is a type of equity or ownership security. Unlike common stock, preferred shares do not have voting rights at stockholders' meetings. However, preferred stock pays a fixed dividend ...