I think he is indicating that he is using the common strategy of "buying on the dips" adding more to his holdings at those times. My average price is about $25 on UTG,I would not be afraid to buy more at todays price but I added some DNP last week. I think DNP as near the top of its higher end right now, but it trades with a tight range anyway, not too worried about variance.
If the fed raise rates can't be more than 1/4% to 1/2%, won't hurt that much, and if the herd bail out , then buy more shares at a cheaper price, I'm wanting a 10% plus correction so I can start buying PNY. UTG is a great cef, it is better than DNP.
weakness. Where else can you get this kind of safe return? Interest rates will stay low for a couple more years meantime, I'm buying!
"Just keeps going down"??? Pull up a maximum year price chart for this stock. And you worry about it pulling back a little from its all-time highs. All the utilities are down this year. It has to do with what the Fed is going to do with interest rates. I think your worry box is way too empty. If you want volatile stocks, go buy Apple or Netflix. That will really keep you up at night.
Well if you guys have held for years then I'm sure you got it at much lower prices. I bought a little over a year ago in the $24 $25 range and plan on adding more. I guess it depends on what your objective is. I'm trying to build a portfolio that pays me a nice dividend throughout the year for extra income. Maybe something I can leave to my kids when we die and in the mean time give us some cash to live off of when we need it down the road to supplement our retirement. Bonds and utility prices go down when interest rates go up but they still pay the dividend. This investment fits my objective and I will add more if its keeps dropping. So I guess it all depends on what you want out of it. Do you take your gains and buy back in hopefully at a lower price or be a long term investor and keep adding shares. What happens if they don't increase rates and it pops back can you find another that pays as much and is as safe and diversified.
What am I doing? Nothing... just hanging in there, and enjoying the continued very nice distribution. But, if it does go down a couple dollars more, I probably will jump in and buy some more.
i've also had it for many years. Still have a large gain but this hurts. The other utilities I have and other dividend investments are also hurting as are most of my bonds. The yield on the 10 year goes up nine out of ten days, a killer. The volume spikes in UTG have also been large. I am also interested in others thoughts.