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Posted: 1/27/2016 6:25:32 PM EDT
[#1]
It's been brought up here a few times since I've been around. It's a relatively stable fund, but it has dropped over the past year, nearly 10%. I bought in with a little less than $2k to try the waters when it was somewhere around $9.40. I subsequently sold it at a loss when it was around $9.10 because I wanted the money elsewhere.
As for the dividend, that seems to have a 30-year track record backing it up. If you can get in at $9 or less and plan to ride it out long-term, I'd do it. Just remember, dividends aren't tax-free, and at 6.5% per year, you'd need nearly $200k invested to see $1,000/month, before taxes. |
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Posted: 1/27/2016 7:24:54 PM EDT
[#2]
I have owned it in my Traditional IRA for a few years. Have about 2300 shares. Have gotten dividend notices every month like clockwork since I bought it. Slowly but steadily growing. At $9.10, the yield is about 8.5%. If you have a stomach for some risk, it's not a bad buy, IMO.
If the market tanks like it did in 2008 and it gets back down to $6/share while still paying the dividend, I will gobble it up like a fat kid eating cake. |
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Posted: 1/29/2016 9:47:40 AM EDT
[#3]
I have a number of shares in a brokerage and an IRA. I love the fund. I have a fee-free reinvestment program with it as well so I reinvest the dividends every month for more shares. It's been a bit shaky as of late getting all the way down to almost $8 per share, but it's back up over 9. I would say anything at or under $9 a share is a good place to be. It did a pretty hardcore dip around 2008, but if that happens again I see it as a good way to pick up some more.
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Posted: 1/29/2016 11:32:28 AM EDT
[#4]
Quoted:
Has anyone looked to this stock at all? I'm considering it to park some emergency fund money to at least earn something in a relatively safe stock. It's paid a 6.5% month dividend since like 1989. It's around $9 a share right now, so it's relatively cheap and it only fluctuated in price from about $8 to $11.50 over 20 years. Later when we buy a house I may not put much down on the house. I might just keep adding to that fund and let it pay for my mortgage every month. I kinda like having the cash available and not tied into a house. I know there are tax implications for this, but that's fine with me. I am trying to wrap my head around how that sentence correlates with the fund you are talking about. |
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Posted: 1/30/2016 1:42:08 PM EDT
[#5]
Nothing that yields that high is safe. The chart I looked at shows it falling from $11 to under $5 after the 2008 crash. Not saying it's a bad investment but it's no bank cd or treasury. A fund that has even a higher yield is RCS, currently yielding over 11% but I'm sure there's a lot of risk with that one also.
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Posted: 1/30/2016 6:31:11 PM EDT
[#6]
Quote HistoryQuoted:
Nothing that yields that high is safe. The chart I looked at shows it falling from $11 to under $5 after the 2008 crash. Not saying it's a bad investment but it's no bank cd or treasury. A fund that has even a higher yield is RCS, currently yielding over 11% but I'm sure there's a lot of risk with that one also. Buy it for the dividend, not price gains. Think long term. |
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Posted: 1/30/2016 8:14:42 PM EDT
[#7]
Quote HistoryQuoted:
Buy it for the dividend, not price gains. Think long term. Quote HistoryQuoted:
Quoted:
Nothing that yields that high is safe. The chart I looked at shows it falling from $11 to under $5 after the 2008 crash. Not saying it's a bad investment but it's no bank cd or treasury. A fund that has even a higher yield is RCS, currently yielding over 11% but I'm sure there's a lot of risk with that one also. Buy it for the dividend, not price gains. Think long term. the fund has >30% leverage. Eventually you need to pay the piper. |
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Posted: 1/31/2016 8:05:27 PM EDT
[#8]
i have it as well, bear in mind that dividend isnt covered by the underlying utility firms dividends, they often have to sell shares to generate cap gains to pay it, its not without risk
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Posted: 2/1/2016 2:03:18 PM EDT
[#9]
Do either allow reinvestment of dividends? (DNP or RCS)
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Posted: 2/1/2016 2:38:36 PM EDT
[#10]
Quote HistoryQuoted:
Do either allow reinvestment of dividends? (DNP or RCS) on a fund level no, because they are both closed end funds. From a custodian/broker standpoint you would need to tell them to set dividends to reinvest. On another note, I'm I the only one that worries about you guys proverbially shooting from the hip with these things? |
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Posted: 2/1/2016 5:01:29 PM EDT
[#11]
Quote HistoryQuoted:
On another note, I'm I the only one that worries about you guys proverbially shooting from the hip with these things? FWIW, I don't keep more than 8-10% in any investment. Most are around 4-5% and some are as low as 1% for the "I like to dream, but I am set in reality" factor. |
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Posted: 2/2/2016 2:26:56 PM EDT
[#12]
can we have discussion on how y'all go about screen stocks before you pick them?
I imagine that you use some metric (P/E, div%, bookvalue/market value etc...) to first sort out potential buys. Then go deeper into the financials to make the final pick..? |
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Posted: 2/2/2016 10:35:49 PM EDT
[#13]
Quote HistoryQuoted:
can we have discussion on how y'all go about screen stocks before you pick them? I imagine that you use some metric (P/E, div%, bookvalue/market value etc...) to first sort out potential buys. Then go deeper into the financials to make the final pick..? That's like asking what color blue is best. 
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