You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Beating risk free rate by 2%?
- Thread starter nfactorial
- Start date
Buy utility preferreds. Average yield about 6%. Whenever one appreciates (say about 40 cts which is approximately the amount of a quarterly dividend), sell it and replace it with one with a higher yield/lower price. That way you'll bump the yield up a bit by taking periodic capital gains.
Most are currently trading above issue price ($25) so you'll have to be cognizant of interest rate hikes.
Most are currently trading above issue price ($25) so you'll have to be cognizant of interest rate hikes.
Quote from nfactorial:
Hi
I know that for most people here such a low performance would be ridiculous.
However there are already a lot of threads discussing how to turn 10k in 1M in less than a year.
So, if you wanted to beat the risk free rate by a few percents, how would you do it?
The goal, of course, is to be as reliable as possible.
These days, what is risk free? Us gov't paper? Easy to argue that isn't risk free. Debt to gdp etc...
But to give my 2 cents... I would say individual corporate bonds with names I feel safe in. But for ease perhaps csj. The ishares short term investment grade bond fund.