If I bought 10,000 dollars worth of NLY and held for 3 years with a 12% DIVI and reinvested the Divi, where or how much would I have???
I'm getting older and looking for yield and am tired of trading and chasing growth stocks. TIA
In 1975 and 1976, I bought four 30 year coupon type $5000 municipal bonds the lowest paying was about 9.5% and the highest paying about 10.5%. Every one got called before 1990. In 1978/1979 I was buying short term CD's paying 14 to 15% (prime rate got to 18 - 20% (Carter years). But what does that have to do with the Math question. Depends upon whether you are strictly talking about mathmetical calculations or predicting the future economy, interest rates, tax burdens, jobs, housing and all them there factors that measure how well the economy is doing.
5. Collect another 4 quarters of divvie on 900 shares til sept 2014. At that point sell a Jan 2017, $30 put contract for $1500, then collect one more divvie till Jan 2015 when the first put contract will be assigned for $3000, leaving you with 1000 shares and $1335.
6. Collect another 4 quarters divvie of $2520 on the 1000 shares. You now have $3855 of which $3000 will pay for the expiry of the Jan 2016 put, leaving you with 1100 shares and $855.
7. Collect 4 more divvies on 1100 shares of $2772. You now have $3627 of which 3000 will pay for the 2017 put leaving you with 1200 shares and $627.
So in 22 quarters you went from 550 shares to 1100 shares plus $627. I make that 3.74% per quarter compounded, or 15% annual.
Depends on interest rates. The 10 year treasury could be 6%, given the fed debt and spendocrats in control. If 6%, you'll be lucky if your NLY and reinvested divs are still worth 10k. Nly is a good stock, but read the 10Q. Then you will know that even management admits you better not buy it and forget it, because as interest rates rise, their earnings will drop, a lot!
46 % return had you done this 3 years ago to this date.
10k is worth 14600.
had you held since 1996
Current Value (dividends reinvested):
Share Price Change:
Total Return (dividends reinvested):
20/20 hindsight. That's history, too bad I didn't find it 10 years ago. The question remains, what will $10,000 invested in NLY today with dividends using the DRIP be worth three years from now. And that is not a math question. Also bear in mind that NLY dumped all the bad stuff on CIM a few years ago. Look at CIM total return calculator for the last three years.
Just what is your real question? If you are asking if investing $10000 in NLY today and divs reinvested (in what?), what would it be worth three years from now that isn't a math question. If you are asking what $10000 invested at 12% (12.55% effective) annually but compounded at 3% quarterly then that is a math question and the answer would be 1.03 raised to the twelfth power times 10000 = $14,257.61.
Here is a link to a dividend reinvestment calculator that should help. Based upon $18 per share, and 555 shares, and reinvestment, the value would be $14,414.54.
If you can't do the simple math. you have no business buying NLY
you should stick to Gov't bonds, they'll do the basic math for you.
Please go to "iamstupid .com" you 'll fit right in
It's none of your damned business, Thrasherter,
whether or not he/she buys NLY or bonds or anything else, and whether or not asks for help.
If you were such a genius you would have better things to do than lurk over a message board seeing when you can make a fool out of yourself.
My face is red. I defer to Paul.
The figures that I had show them at the START
of each quarter. Therefore the correct figure is indeed $14,257.61.
1 $10,000.00 3.00% $300.00
2 $10,300.00 3.00% $309.00
3 $10,609.00 3.00% $318.27
4 $10,927.27 3.00% $327.82
5 $11,255.09 3.00% $337.65
6 $11,592.74 3.00% $347.78
7 $11,940.52 3.00% $358.22
8 $12,298.74 3.00% $368.96
9 $12,667.70 3.00% $380.03
10 $13,047.73 3.00% $391.43
11 $13,439.16 3.00% $403.17
12 $13,842.34 3.00% $415.27
BTW...This can be a very informative site. We do NOT need nasty and childish diatribes.