Top 10 High Yield Corporate Bonds
High yield corporate bonds are issued by companies who do not normally qualify for investment grade ratings assigned by three major US rating agencies like Fitch, Standard & Poor and Moody’s. Once you buy one of high yield corporate bonds, the issuer guarantees to pay you interest income at regular intervals of time and return your actual principal payment at the end of bond’s maturity period.
Corporate bonds generally come with a much higher investment risk compared to high yield municipal bonds or United States savings bonds since it’s easier for a single company to default on principal repayment vs. a state or any other government body. Since most corporate bond issuers carry ratings much lower than municipal agencies, they need to provide their investors with higher yield bonds to attract them in the first place. Majority of high yield corporate bonds are issued by corporations, banks and even foreign governments and companies.
There are some important points to keep in mind while making and investment decision on high yield corporate bonds, namely, maturity period, current interest rate, yield to maturity (total earnings) and, most importantly, a bond rating. One must be especially cautious while considering investing in so called premium bonds that are usually sold at a higher rate than their face value to avoid excessive financial risks.
The Top 10 high yield corporate bonds list was comprised below using the data analysis from darwinfinance.com and consists exclusively of US companies.
1. Xerox Capital Trust (BBB). Xerox aims to ensure your copying needs are met. A leader in the document management industry, Xerox is unmatched and unparalleled in their unique approach to consumers. Providing sound and lucrative investments to shareholders, Xerox stakeholders know they are getting quality high yield corporate bonds and stocks. Xerox seeks to satisfy your bond needs, by providing Xerox Capital Trust, a unique and fiscally responsible note. Xerox Capital Trust I received a solid BBB credit rating, is multifaceted to serve the novice and experienced monetary investor, innovatively provides a fixed coupon rate, and connects stakeholders to the embolden future with a maturity date of 2037. Xerox Capital Trust is apart of a document enterprise driven to grow revenue and keep consumers wondering what they can think of next. Xerox provides results, nominal and enormous and is a must for a diversified portfolio.
2. International Paper Company (BBB). Committed to quality product, International Paper Company is a worldwide leader in the paper and packaging industries. From digital opaques to durable printing bristols, International Paper Company has the strength of the environment behind them. The corporation offers its stakeholders fixed and zero coupon high yield corporate bonds. With a relatively small price, International Paper produces some of the most consumer viable bonds in the country. Purchasing an Intl Paper 7.3% bond, for example, will garner each stakeholder a smooth 6.41 % maturity. International Paper Company bonds are eco-friendly and sealed with lively forest certification. With a bond from International Paper Company you are guaranteed that your money will recycle itself time and time again.
3. Weyerhaeuser (BBB). Weyerhaeuser is the mover and shaker of the economic terrain. Inspired by the trees that rustle and blow for more than a century, their fundamental approach is sustainability that seeks to yield a prosperity forest. Their thriving woodland has been a gleaning harvest of building homes and making products that are pivotal to our everyday lives. Weyerhaeuser’s economic thickets are built upon stock growth and high yield corporate bonds. Shareholders of Weyerhaeuser Company bonds receive a projected return between 5.2 and 6.3 % proceeds. Their bond amounts rise to over $1000, gusting and whispering with maturity dates reaching 2033. Stakeholders of Weyerhaeuser Company will receive an innovative, neighborly and vibrant piece of a renewable resource giant in the business world.
4. Chesapeake Energy Corp (BB). Chesapeake Energy Corporation is one of the nation’s top generators of oil and natural gas. Leading the conception in Oklahoma City, Chesapeake Energy Corporation is about stimulating renewable resource driven stakeholders to invest in their high corporate yield bonds. Company’s main objective is amassing returns by developing, executing and sustaining a renewable approach on an idiosyncratic business tactic that is focused solely on exploring for and producing natural gas and oil in the United States. Resource driven stakeholders can purchase series notes ranging from 2.25% leading up to 9.5% with maturity dates reaching 2038. Chesapeake Energy believes the key elements to investor success are found in enthusiasm, commitment and financial outgrowth that conceive something resourceful and clever amongst its shareholders.
5. Motorola Inc. (BBB). Motorola Inc. is your personalized mobile phone company speaking and talking you through the financial affluence you seek. The multinational telecommunications titan publicly trades on the New York Stock Exchange for your investor needs and wants. Whether you own Motorola Mobility or Motorola Solutions or both, Motorola Inc. promises to navigate you through the fiscal beeps, buzzes and rings. High Yield Corporate bonds within Motorola Inc. offer a fixed coupon type and maturity yields bleeping towards 12.75%. Give a jingle to your financial advisor for either the Motorola 8% bond, or a plethora of Motorola Solutions notes that range in percentages that touch base all the way to 2097. Build your pecuniary network today with a bond that bares the name Motorola, especially now when company is being under Google umbrella.
6. Goldman Sachs Cap II (A). Goldman Sachs is an investing mogul rippling through the global banking and financial pond. Investors in Goldman Sachs can be certain to fly high with the global securities including high yield corporate bonds and mutual funds as well as asset and investment management that operate at the company. The Goldman Sachs Capital II bond is one worthy of attention. Shareholders will find its par value of $1000 agreeable and notable. Its polished yield spread is 3.77% and provides a floating rate. Goldman Sachs Capital II bonds are the “crème de la crème” of the firm, maturing in 2043. The bond is callable and taxable. Financiers will be awakened by the monetary exhilaration and jubilation of owning a Goldman Sachs bond.
7. Sprint Cap Corp. (BB). You haven’t had cellular phone service until you’ve mobilized with Sprint Capital Corporation. Developed in 1993, Sprint Capital Corp. continues to be one of the largest wireless networks in the United States. An investor’s telecommunications matrix, Sprint trades stock and high yield corporate bonds. They offer extremely low risk, so your portfolio will receive a boost from them being in there. Sprint Capital corporate bonds provide a long distance rate of return reaching 10.49% and a fixed coupon rate. With a middle rating for credit quality, you will add diversification in your portfolio with these bonds that mature up until 2032 and coupon percentage of 11.375%. The global carrier promises to boost your mobile investment strategy. Gravitate to Sprint Capital today for a welcomed addition to your financial future.
8. Altria Group Inc. (BBB). Altria Group is the responsible wine and tobacco provider of consumer products. With a deep passion and understanding of business growth, investors can take a journey through the fermented grapes and belvederes of Altria Group’s high yield corporate bonds. They emit a flourishing radiance of the company’s achievements in consumer satisfaction and leadership. Each bond reflects a sustainable investment route that promises to execute with unbelievable novelty and demonstrated passion. A group of 12 analysts peruse through Altria’s financials to make certain that their investors are receiving the affluent nature of a company created in 1856. Shareholders can obtain the renowned Philip Morris bonds or impressive Altria Group notes that range in amount and maturity. The coupon percentage puffs at 4.125% and vapors at 10.2%. Become apart of this company’s fiscal vision today.
9. Royal Caribbean International (BB). Royal Caribean is your global cruise vacation destination that offers a unique stakeholder pleasure trip. Experience the grandeur of the marvelous high yield corporate bonds and stock. RCI is committed to bringing financial prosperity to its shareholders. With bond ratings such as a Ba3 rating from Moody’s, a BB from S&P and range from $150 million to $1 billion in face value with a coupon rate beckoning you within a range of 5.6 and 11.875%, swim within the financial waters of this lucrative corporation. Embark on the oasis of Royal Caribean International investing for a pecuniary allure unlike any other. The grandeur of the marvelous Royal Caribbean International voyage through the relaxing waters of investing are waiting for you.
10. Valero Energy Corp (BBB). A Fortune 50 Company based in San Antonio, Texas, Valero Energy Corporation is the world’s largest independent petroleum refiner. Valero Energy is the first-rate provider of fuel and products that impact people’s lives. Exuberant and diversified in their technique, shareholders will be pleased investing in pipelines and terminals that permit Valero to convey quality clean fuel that delivers swiftly, dutifully and resourcefully on their investments. Valero Energy Corporation’s clean product slate supports a host of industries, proving that by investing the Valero will fuel your bank account and wallet. Their high yield corporate bonds birr with vivacity and dynamism with a fixed coupon rate. Many Valero Energy Corporation bonds promise steam reaching into 2097 and potent return rates of 6.52%. Electrify your portfolio with Valero Energy corporate bonds and give it the juice it needs.
Buying separate high yield corporate funds could be quite pricey once you take into consideration all the fees to be paid to brokerage firms. On the other hand, investing into high yield corporate bond index funds is a great way to diversify your bond portfolio, save in processing fees and protect you from the bond default risk.