Quote:
Originally Posted by GregWeld
I put some cash to work first thing this morning in Annaly (NLY) and Con Ed (ED)... just nibbling and adding to my holdings. Both of these have been stepping down for awhile now - and as they do - the dividend PERCENTAGE rises. I practice what I preach and I scale in and or scale out. As an example -- I held 7,000 shares of ED -- This morning I bought 1,000 more. At 4+ percent return -- it's a decent hold and I think it's been selling off due to the big storm and the expected costs. I view this as a temporary issue. Not that this is a stock that moves all that much to begin with (which is why I own it in the first place!).
I added 10,000 shares of Annaly.... at these prices -- it counteracts the lower dividend % of shares like ED. I would repeat - this is not a stock that should be bought and forgot. It's a pure dividend play and as such - is much more volatile. These kinds of shares are where I park cash.
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what are guys like you going to do if the dividends tax goes from 15% to 39.6%? I believe that's where it's set to go Jan 1 if Congress doesn't change anything.