SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Wallace Rivers who wrote (30807)5/1/2008 7:36:30 PM
From: Paul Senior  Respond to of 78702
 
BGF/BGS. Looking at it again now, it doesn't seem like there's much difference. As you say, the dividend yield is about the same. (BGF a little higher now; and with different tax rates for bonds vs. stocks, that difference could diminish.)

Half of BGF is the bond component, so maybe that bond half is safer than the common. OTOH, whatever risk is in BGS common is in the BGS half of BGF too.

I may have started with BGF because when I first bought, I believed the yield was so much more than BGS. (I don't even remember if BGS traded then without the bond though.) I've just stuck with BGF, and as the price has come down, I added more BGF.

I've no favorite, one over the other. Might be that since BGS has come down so much more relative to BGF, that BGS might be the better value now.

finance.yahoo.com