trying to find ways to save for college
don't have time or extensive knowledge on stocks
I have a couple of large dividend paying co's now
Tell wifey to take the money out of CDs. That's stupid. Inflation and college costs go up every year more then CDs. Buy preferred stocks of mortgage reits instead, then dont move and will pay unless the company is bankrupt. 7.75% or more depending on prices and what u buy.
I would stay with big Dividend Blue chips and Utilities and prehaps a big bank Preferred bought at Parr. And you may need to trade on a run up and buy back on a pull back. Also you could take a investment cource at a Community College. For $25-$50 you can learn a few basics from a pro. They pro is looking for a future business contact. I took one and it broke the fear of the unknown and got me started.
This and MTGE are the best. MTGE may be even better over time. ARR and JMI are a little less grounded versions of these. TWO is pretty good, too.
As to when to buy, since they're cyclic and have repetitive down-drops and upswings and you don't want to buy at the peak, it's hard to tell. They've all stopped doing SPOs right now because the Fed is making the price of MBSs high, so the mREITs are better off just collecting interest on the MBSs they have instead of diluting their income with high-priced, low-interest MBSs. But if the mortgage market starts to get tight and rates start to rise, that could change quickly and we could get some massive SPOs to make up for lost time. However, SPO drops always come back, so right now is a neutral position at worst. The div runup will be higher.
Unless the debt-ceiling debate puts a dagger into the whole market.
Have you looked at the preferred shares? Stable prices, unchanging 8% dividend...
I'm waiting till after earnings to see if I want to get back in.They may be adjusting the dividend amount,once I see that it's stable,I'll buy back in(MTGE and AGNC).I'm in PSEC at least for January's monthly dividend.The other thing is feb-march may see more market turmoil due to Gov.spending limits being reached.