JRS is ideal for a small investor who is in the lower income tax brackets, especially those with incomes less than $40,000 a year in retirement. The dividend rate is 9.4% at the recent price of $9.80. And JRS is a solid fund in an industry that is recovering well. Thus it is the closest you can get to a growth industry at that dividend rate. I just bought another 500 shares at $9.53 this morning.
If you are wondering why JRS has taken a tumble in the last week it is because it is a thinly trades fund and any sudden selling pressure forces it down dramatically. There is no adverse business news. The current volume for today and yesterday looks like climax selling well over four times its normal daily volume. I’m guessing that someone woke up to the fact that taxes on dividends will probably rise from 15% to 25% next year. They had been planning on selling their shares and decided to do it in this tax year instead of the next year. But for us humble investors who buy for the dividends to supplement our social security this is an ideal fund to buy. You pay the commission of a stock even though it is a fund and if you don’t plan on selling you couldn't get a better dividend on a secure, stable fund.
It may retest the bottom of around $9.60 but it probably will not go below that. And there is an excellent chance that it will rebound tomorrow or early next week as soon as the Republicans realize the jig is up in preventing the rise in the maximum tax rate for billionaires, who have been abusing the average investor for the last ten years.