Quote:
Originally Posted by GregWeld
I'm thinking you all need to go back and re-read Investing 102 again.... you're starting to think and act like traders. Not Traitors - traders... 
Annaly Capital Management (NLY) is now paying almost 14% dividend... and what happens on your old price that you paid too much for? Your dividends BUY MORE shares at LOWER prices... so not only are you buying a higher dividend payer -- you're bringing down your first cost as you go along... and that dividend (at 14%) is HUGE compared to other investments.
NOW --- I WARNED all along that NLY and JNK and HYG etc - or shares of their ilk -- ARE NOT FOR THE FAINT OF HEART! I said this repeatedly. These shares are to be bought for one reason only --- to boost your overall dividend percentage. So you own a Coke (KO) that pays 3+% -- IF you want to boost your dividend percentages -- you can stir the pot with the likes of the NLY's - the JNK's - the HYG's...
If you look at their charts -- they're RANGEY --- they move up and down -- not much in $$ terms but the percentage move is up or down 10% or said another way -- up 10 and down 10 is a 20% move! But ---- the big BUTT ---- even down 20% --- it's paying you 12/13/14% ANNUALLY....
I'm not defending this stock - nor any other... we're not about trying to pick the perfect shares... We're using EXAMPLES ---- and we're LEARNING about how to think about stocks - about how to use them - about dividends - etc ---- all things that many folks didn't know anything about a few months ago. So I'm saying to REMEMBER why you bought something in the first place... 'Cause the market will move up and down many many times in your lifetimes. You'll have to go back at times and really question why you bought what you did.  |
yeah.. i hear ya.. I really shouldn't of bought it to begin with. As i didn't fully understand the whole mREIT thing, and that's why I bailed before I lost money.
i let the talking heads get to me on something i didn't understand. but at least i didn't let it get me at a point i was out money. heh.
I instead bought something i felt more comfortable with while it was on sale; MCD.