There are a lot of strange critters in capital markets. Among the oddest are preferred shares, which tend to have higher dividends that common shares from the same company.

The bonds are there for the picking. You need to have these strategic goals in mind, for bond investing is a much different process than investing in stocks.

We asked three experts to give us their pick for the one income trust that can maintain or increase its distribution (as either a trust or corporation) through the challenging environment that lies ahead.

There's a saying in bond investing — government bonds don't have stories, but corporate bonds can have long tales. All investors need to know about government bonds is how they respond to changes in interest rates.

Inflation today doesn't seem to be just 2 per cent in Canada and 4 per cent in the U.S. It feels much higher. And think about this: The markets for real assets - gold, food, energy and commodities - continue to rise, which suggests inflation.

Bond investing is all about anticipation. In the present bear market in equities, the safe stuff - short-term treasury bills, government bonds, supranational bonds issued by the likes of the World Bank, and global issues backed by governments - have been bought up by frightened investors.

You won't get growth, dividends or protection from inflation-the only thing bonds guarantee are lousy returns

Letter to the Editor »

The bond market has turned into a seller's nightmare - just ask anybody who holds locked up asset-backed commercial paper. But that means it's a buyer's once-in-a-decade dream.

The world is having a debt crisis and Canadian capital markets are caught in the middle. Old stalwarts like bank stocks have been knocked down as investors recognize that banks are exposed to billions of dollars worth of risky derivatives. There are few places to hide, but don't forget to consider bonds.

How to leverage the dividend tax break

THAT OLD SAW ABOUT death and taxes being inevitable is only half true: If you live in Canada, you can earn a tidy five-figure income without paying any tax. And you won't have to open an offshore bank account or work a single job under the table, because it's perfectly legal in the eyes of the Canada Revenue Agency.

RIM's skid shows why growth stocks are sometimes Lulu And Dividends are Important

One of the dangers of investing in high-growth companies is that, when the stock market stumbles, they're often the first to get trampled. That's because expectations are so high with these stocks that any whiff of trouble sends investors racing to the exits.

Finding a good Canadian dividend stock usually involves only a quick look to the financial sector. But with banks, investment funds and real estate hit by the credit crunch and those stocks on a downslide, investors may want to look elsewhere.