So one ETF that has a small part of my portfolio is BND. Basically an aggregate of bonds managed by Vanguard. It pays out a monthly dividend which has not been very impressive over the past few years, but the price was rising, presumably because the dividend was higher than what you'd get with a bond or high interest account.
As you all likely know, interest rates have been on the rise. The price of BND cratered, but the yield has gone up to 2.55%. I'm wondering if it would be a relatively safe bet that once rates start dropping again, or even if they just stay steady that we'd be looking at some decent capital gains. Then of course the rates will also go up as the lower yield bonds mature and are replaced with higher yield bonds.
Do I properly understand this, or am I missing something? This isn't a slam dunk, but it also seems like a fairly conservative assessment.
[link] [comments] https://www.reddit.com/r/stocks/comments/136yuo8/bnd_mediocre_dividends_now_strong_capital_gains/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
