Clarification on Income Deposit Securities
Q: I read your article about income deposit securities. I am very interested in this type of investment, but I checked out DRY and CVP for example, and they do not appear to be very good stocks. Am I missing something here? I subscribe to Vector Vest, and their take on the stocks themselves is negative. Any response is greatly appreciated.
A: Like any investment, an IDS needs to be monitored and managed. DRY and CVP have been hit (with the rest of the market) over the general credit concerns, though it shouldn't affect them. The underlying businesses remain strong and the current yield is very attractive. I still hold CVP and DRY in clients accounts, but am not currently buying more DRY.
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