I'm retired and living on a pension, Social Security, and dividends. I would appreciate any thoughts that you may have covering investments that have higher yields, perhaps over 7%, which are stable, relatively safe, and may offer some opportunity for small increases in share price or dividend. NLY seems to fall in this category. Any thoughts on this and other investments would be appreciated as I would like some diversity.
Your thoughts are appreciated and I wish you as a veteran a happy Memorial Day weekend.
IKN, I am in the same boat as you are, SS plus pensions, I have been keeping my nose above the water with energy stocks, Atls-LP, but not a good time to buy right now, hitting a all time high pps, They had a spin off last year that is doing well, Called ARP, not too expensive if you can get in on a dips under $24. Been paying .45 and I expect to see above.50 or better before the end of the year, also there should be a pps increase before the end of the year which should help your case, I am thinking $26. or better before the end of the year or maybe better, Good Luck and IM me if you like. JJ
Can't quite give you anything safe over 7%, however I can give you a few around 6% that I believe are relatively safe. KMR yields 6 % (through stock splits) and increases it's payout almost every quarter. If you look up KMR on this website it doesn't show it's yield, you should go to Kinder Morgan's website to understand how it all works.
WNAPR are old wachovia preferred shares (guaranteed by Wells Fargo) currently yielding 6.28% and aren't callable until 2022. It also might be listed as WNA., or WNA/PR depending on your broker. You will lose a little principle by 2022 (current price is 28.66 and par is 25). However I believe it is one of the best and safest financial preferreds out there.
The dividend is not stable in this sector. The 2008 debacle saw the divi and price of NLY deeply cut.
Unless there is another financial crisis similar to 2008, and there could be thanks to the Fed, I would
not expect as big a rout during the next downturn. IIRC, the pps of NLY was cut in 1/2, while the divi
went down to maybe 7 cents in 2008-009. The NLY chart shows strong support at $11 to $13 area.
Suggest scaling into NLY gradually. Take advantage of dips.
I own nly and cmo. Not happy with the recent results. Take a look at uan or cvrr. Both have solid fundis and are owned by Ichan and just did a seconday. Read up on uan it gets cheap pet coal from cvrr. Cvi is now the holding co.
I have some NLY along with AGNC, EFC, CYS, IVR, and MTGE. They are all on a downward slope right now as the market is getting a little jittery with Bennie and the Ink Jets suggesting that they may lay the printers to rest in the not too distant future. Normally mREITs and BDCs take it on the noggin a little more forcefully than do the typical defensive stocks like JNJ, PG when a downturn hits but with the recent growth spurt on the S&P and the DOW they may all suffer equally this time. I have put links to a few articles that provide insight from different investors concerning both mREITs and BDCs with the heftier dividends. I like BDCs also such as PSEC, TICC, and some of the others that are mentioned in the BDC article. The danger in the mREITs and BDCs is of course when they announce that they can no longer support their hefty dividend out of profits and investors immediately assume that they must cut it, couple this with a decrease in NAV and the stock will migrate down. This happened to AGNC this last quarter and there has been quite the sell off to date since earnings. Long term most of these companies should survive this change in money structure with the FEDs getting out of the security buying business and the spreads increasing if we do not suffer a catastrophic down turn like what we saw in 2008. Indeed as pointed out in one of these articles the increase in spread should offer better profits to the agency backed mREITs.
Just my thoughts... I am only 26 and have 8 years invested in the Marine Corps, far from retirement. The stock has been on the decline for a little while, so if I were you I would be careful with this one. I have a few hundred shares as I like the dividends and I think that the company is headed in the right direction (I have time on my side). You could purchase a few hundred shares are sell a few covered calls to give you a buffer you from downside share price movement, while still collecting the dividend. Maybe write some deep-in-the money calls for 2015. Just ensure that you get a fair price. The downside to this strategy would be that you you miss out on share price gains and risk have you shares being called away. But you are limiting the your downside risk, you may want to get advice from a financial adviser.