I have about 10% of my portfolio in DDT and actual Dillards bonds. I actually feel safer in Dillards than just about anything else I hold . Dillrds should be investment grade. I have been adding more DDT recently,but like you I want to be diversified-not all in one thing. I think 10-15% in Dillards bonds is a safe bet. And they are bonds and dont have the fluctuation the common has and 9% interest is pretty good,considering the company is doing great with prospects improving. I started buying when DDT was around $5-6 last year. What a great investment!!!
I have well over 10% in DDT. Did not start out that way, but with growth that's where it is. I'd reduce my position, but DDT still seems the best value of all that I hold. If I had cash laying around as a short term play I'd buy a slug right now, as it seems to me that at minimum you'd pick up the dividend if not more in the next 30 days.