I'm not a fan for trading frequently and I don't, as a general rule, use options unless I'm trying to salvage a potential loss. I bought AI (4000 Shares) in late November 2012; (2000 shares MTGE) and (2000 shares CYS). Collected dividends: AI $.875 CYS $.92 (incl. a special div. $.52) and MTGE $.90. Dividends as a % of purchase price: AI +4.1% CYS +7.6% and MTGE +3.7% . In addition, over the same time frame each appreciated as follows (November 2012 thru January 23, 2013); AI +9% CYS +6.9% mtge + 6.4%. Total gain...Dividend + Appreciation AI 13.1% CYS + 14.5% and MTGE 10.1% all in approximately 10 weeks...Can one really do that much better trading frequently? Comments appreciated.
you are right on....the general public buys these REITS or BDC's with giant divys and holds until hell or high water hits, like it almost did during the tax rate debate that occured in DEC as part of the fiscal cliff deal. That risk has passed for the time being. 1/3 of my holdings are REITS and BDC. They hang in strong when the market turns down....
Not knocking you but your timeframe is a little suspect for comparison purposes. I did 11% across my entire portfolio in Jan alone. The last 10 weeks aren't really a fair comparison because everything has gone up across the board since mid Nov. Come back after the next sell off or the summer slump.
It's difficult to know what is a good entry price especially when there has already been strong upward movement. Regardless of what I buy and when or at what price, I stage my purchases over several week as opposed to making one or two large purchases so that, if a large drop in price occurs, I can price-average and take some of the "sting" out of the price drop. This will also help to speed-up recovery assuming the prices resume upward. I have a lot more patience now than 30 years ago. If I'm convinced that an investment will recover, as long as it pays an acceptable dividend and is not in immediate threat of failure, I will hold unless another opportunity presents itself that will allow for a faster recuperation. GOOD LUCK!