Bonds getting called, looking for yield.

[Raymond01]

I have several bonds and recently some have gotten called. They were paying in the 5-6% range. I am relying on the dividends for retirement income. So I am looking for something to replace them.

A friend mentioned Lord Abbott Bond Debenture. Looking at Morningstar, it appears this fund pays a yield of 4.49% TTM. Not sure what TTM is and is there a way I can tell what its yield was in past years?

Any other suggestions on how I can get close to what my bonds were paying?
What does Vanguard have? I see something called High Yield Corporate Fund that appears to be paying 5.33 TTM. Thoughts on that?

 

[audreyh1]

TTM = trailing twelve months

 

[pb4uski]

TTM is trailing twleve month return. Hard to answer the rest without knowing your appetitie for risk, current asset allocation, desired asset allocation, etc.

One common trap in this low interest rate environment for income investors stretching for yield and unknowingly increasing either credit or interest rate risk.

 

[Raymond01]

Thanks for the help with TTM.

I have a high appetite for risk. My asset allocation is approx. 75% stocks, 25% bonds, and that is close to my target.

Any other products that Vanguard or others have that generate a good return such as those I mentioned?

 

[joeprintz]

PFF has a yield of a little over 5%.

 

[Dash man]

Main Street Capital (MAIN) is a business development company currently yielding 5.76%. It's my second largest holding. It pays a monthly dividend and typically also pays a special dividend in June and December. It's a great company that I've owned since 2008.

 

[Raymond01]

Some good ideas, thanks guys.

 

[Mulligan]

PFF has a yield of a little over 5%.

The only thing about PFF is it is sector concentrated with vast majority of funds in bank and financial non cumulative preferreds. Not saying it will happen again but many of these type issues got crushed in crisis down to $5 on a $25 preferred. Issues outside this industry did not got smoked to the same degree. If long end rates ever moved a percent this type of investment could see a 20% loss in capital. Not commenting on suitability just the reality. I own a buttload of individual preferreds myself, but accept the risk involved.