Friday, May 30, 2014

How to Get 5% on Your Money From Comcast

Do you get your cable service through Comcast? How would you like to get some of your cable fee back in the form of a yield of 5%? I'm not talking about buying the common stock of Comcast (CMCSA), which only pays a 1.7% yield.

What I'm talking about are the Comcast 5% Notes (CCV), also known as minibonds, that are publicly traded on the New York Stock Exchange with a current yield of 5.0%.  In case you missed the previous articles about minibonds, such as Goldman Sachs (GS) minibonds, or Banc of California minibonds, you should check them out.

The Comcast 5% Notes, have a maturity date of December 15, 2061, but is redeemable by Comcast on 12/15/17. The company pays interest of $0.3125 each quarter. These minibonds are currently trading at 25.00 per share.

Keep in mind the risks.  The distributions are interest and not dividends, so no dividend tax benefits. If interest rates go up, these will go down  in value. These are not like regular bonds, so there is no accrued interest between distribution dates. These have much lower liquidity than the common stock.

So what about the company that is backing these securities? The company reported strong earnings growth of 30.2% on a 13.7% rise in revenues for the latest quarter. The common stock trades at 19 times trailing earnings and 16 times forward earnings.

As long as you can accept the risks, especially the interest rate risk, you might want to consider these bank mini bonds, in order to help bring up your overall investment income. If you are interested in investments like this, your should check out the free stock lists at

Disclosure: Author didn't own any of the above at the time the article was written.


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