I'm in the same boat. I've been DRIPping the dividends, but I am going to average down shortly as I have some new cash coming to my tax deferred account. The extra income and better total % loss will make it easier to wait out a rebound (knock wood).
I meant to "thumbs-up," but missed and accidentally clicked "thumbs-down." And, apparently, I cannot undo it. Sorry about that. So, here's a "thanks" reply to make up for it. Thanks!
Thanks. I could not figure out what was going on, and there were no news announcements I could find. The funny thing is that the shares doubled but the price still shows the same in my brokerage account, so it looks like I got a 100% dividend. Oh well, it was a good feeling while it lasted.
Yes, this is one of the commission-free trades with Fidelity. I'm looking at IDV to help diversify my overall portfolio. As with all diversification, the overall performance will not be as good as the best individual sector for the year, but the portfolio as a whole should win out in the long run. 2014 was great for the U.S. stock market. No so much for non-US developed stock. But it could be the reverse in 2015. At least, that's the theory. And, on the up side, with a dividend paying fund, if you're DRIPing, you are buying more shares at the lower level. Again, theoretically, this should pay off in the eventual turn-around. If we have a very long holding period it should be a smart move. The trick is not to panic and sell when it under-performs other sectors. I know that is easier said than done for someone who bought in in 2008.
I took my lumps too. I knew a high distribution meant risk, and that gamble didn't pay off. I took a look around and got rid of some of my other risky assets too. I'd rather sleep better. Unfortunately, a 50% drop requires a 100% rise to make up the difference. The recovery formula is non-linear, so if it falls further to a 75% drop, it will require a 300% return to get back to zero. Luckily for me, this wasn't a large part of my portfolio, and was relatively inexpensive wake up call.
Four years later, and I guess it is a good thing I couldn't buy ZWB. I would have watched ZWB go way down then back up to break about even in absolute terms (and behind due to inflation in relative terms). Of course, the real down-side was opportunity cost. I would have collected the dividends and calls along the way, but this is during a time where the stock market went up 100%. In hindsight, there were many better places to put money.
Good jobs report = Fed to start tapering
Fed to start tapering = higher interest rates
higher interest rates = lower bond prices
lower bond prices = even lower bond prices for leveraged bonds
Down 1% today on the jobs report... I think it's going lower, especially when the Fed actually starts tapering.
I think that is part of it. But all REITs have been pretty high due to demand from people looking for fixed income substitutes. Now that the 10-year is paying 2.2%, the 4% from AMRE looks less attractive.
Splits aren’t necessarily a bad thing either. In truth, they should tend towards a neutral event because there are twice as many shares but half the price (in a 2:1 scenario; i.e., everyone has the same value and percent of the company before and after the split). However, one theory is that you will draw smaller investors if the price is lower. For example, how many BRK.A have you purchased directly (a stock that doesn’t believe in splits and currently trades at $168,140 per share)?
The company issued a 13% stock dividend to current holders. Everyone will have the same percentage of a bigger pie, but that means each share is worth less (like stock split). It was trading at about 12.67 before the dividend, so it should be at around 11 just based upon the stock dividend. The drop on May 2nd reflects this change.
Is that what you are referring to, or do you have other issues with CIG?
I imagine that different shares are making their way at different speeds to various brokers. If so, then the selling pressure may continue for a while until all the people who've been waiting to get out at the near all-time highs do. I imagine a few more weeks should be sufficient to settle into equilibrium. I’ll reevaluate AMRE at that time.
Just saw that and was considering it, but the thing that held me back is the illquidity. Only 800 convertible bonds traded today. It's not the easiest thing to get out of if you want to sell.
Option income is reported as ROC per the IRS. This fund is designed to bring in income by writting covered calls. If you don't understand that, then you may be mislead by the amount categorized as ROC.