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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (6993)	12/30/2010 11:23:23 AM
From: Paul Senior	Read Replies (2) \| Respond to of 34328

CIM/AGNC, others: Elroy, I come to the point where I'm not concerned about how they will manage their risk, I'm concerned about how I manage MY risk. The yields on these things are very well-known. They're not like in other - rare - cases that I've seen and been involved with where a company has had a glitch in its business, the stock has tanked, and so has its preferred stock. That preferred stock not trading much, not showing up on screens for yield, but offering 15-20% yields. THAT I can understand. I have to believe that every and all yield hounds have come across CIM/AGNC et. al. at some point. So why haven't they bought and reduced that outlier yield amount? Maybe they're all scared or confused as I am. Maybe, as you perhaps might allude, if we understood the company's risks better, we'd have a better idea than other folks who don't take the time to study and see if it's a mistake or not in passing on stocks in this sector. These stocks and their distributions may do very well for buyers here. I won't argue that. For me though, all things considered, they're not a fit for me.