Investment Portfolio Project Assignment Example | Topics and Well Written Essays - 2000 words

Investment Portfolio Project - Assignment Example Some of the advantages I shall enjoy include dividends from the companies. Common stock will account for 20,000 because -: Source of income as dividends Growth potential if the company splits its common stock to satisfy a large part of their financial needs' 10,000 shall go into preferred stock as such shareholders receive dividends before common stockholders are paid any cash. This is especially so when corporations are experiencing financial problems. I wish to invest both in corporate and governments bonds. A bond is a written pledge to repay specified sum of money a government to corporate with interest. When I buy a bond I will be loaning a government or corporate money for a given period. The period may extend between 1-30 years. I have two options: to keep them till maturity or redeem them to another investor. Corporate bonds shall be in Celco Corporation, D&E Corporation, and Alexander & Baldwin. Choosing blue chip stocks is a safe investment that generally attracts conservative investors. Some of the respected companies incorporate America includes AT&T, general electric and Kellogg. I will carefully look out for leadership in industrial group, history of stable earnings and consistency in paying dividends. These corporate bonds shall take 20,000 i.e. AT&T (8%), General Electric (91%) and Kellogg (3%). The Equity stocks shall include Dow Chemicals, Myers Squibb and Royal Dutch/ shell in and equal ratio of the 20,000. The main object for such investing shall be income, getting higher dividends than average stocks. Incase of defensive stock that could be included on the portfolio then Proctor and Gamble, Kellogg shall be good bets. A consistent dividend payout even during...My understanding of different investments in relation to risk depicted by the table below. Buying stocks in a corporation listed in a stock exchange allows ownership and participation in the success of the corporations. I will get an opportunity to sell and repurchase at later date possible at high price therefore getting capital gains. I wish to invest both in corporate and governments bonds. A bond is a written pledge to repay specified sum of money a government to corporate with interest. When I buy a bond I will be loaning a government or corporate money for a given period. The period may extend between 1-30 years. Choosing blue chip stocks is a safe investment that generally attracts conservative investors. Some of the respected companies incorporate America includes AT&T, general electric and Kellogg. I will carefully look out for leadership in industrial group, history of stable earnings and consistency in paying dividends. These corporate bonds shall take 20,000 i.e. AT&T (8%), General Electric (91%) and Kellogg (3%). The Equity stocks shall include Dow Chemicals, Myers Squibb and Royal Dutch/ shell in and equal ratio of the 20,000. The main object for such investing shall be income, getting higher dividends than average stocks. Investing in mutual funds would also be another wise investment vehicle.