I am an historical trader and I trade trends and cycles. I comb the universe of monthly payers that return 10%+ yields and determine entry and exit points that have returned money over 80% of the time over 25-36 consecutive months.
I have presented my GLAD/3% rules on the AGNC board and have found these four low cost stocks fitting my current criteria of low cost payers:
MAIN is also included though a higher PPS stock.
If you look, for example, at just the past 12 periods in ARR from Mar 15, 2012 through Feb 12, 2013,(12 dividend periods), the buy and hold investor made .37 in CA and 1.32 in dividends from a starting PPS of 6.74 to a final PPS of 7.11, for a net 1.32 profit or 19.58% annualized...not Bad!
With my method for ARR which departs from GLAD and has entry at EX+ 2 close and exit on the open of EX-1, I get a profit of 3.23 over the same time period which is an annualized profit of 47.9%, or a 244% improvement over buy and hold. Check out previous time periods. This stock rocks for this method, historically.
Now, to/for all the bashers or faint of heart or discouraged , look back very simply at Dec 14th, 2012. Notice two days post EX PPS of 6.60. Now look at the previous month Nov 15, 2012, two days post EX at PPS of 6.41. Now look at the previous month Oct 15, 2012 , two days post EX at PPS of 6.90.
Now look where the PPS ended up on the open the day before each of those month's EX dates. That's right 7.00 and change. Just those three months placed 1.13 in your pocket. Now finally look at Feb 15, 2013, two days post EX at PPS of 6.60...do you see a pattern here? Bashers/Disheartened take note, this is not brain surgery.
So what must we do...whine and complain about what a terrible stock this is...or alternatively, make money? I choose the latter..how about you....;-)