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

To: Graustus who wrote (31058)	4/9/2019 8:32:28 PM
From: Elroy	Read Replies (1) \| Respond to of 34328

If collect 4 quarterly dividends= $2,000 Gotta pay tax.

To: Graustus who wrote (31058)	4/9/2019 9:03:12 PM
From: Thehammer	2 Recommendations Recommended By Graustus JimisJim Read Replies (1) \| Respond to of 34328

Yep, you are correct if you count the income received. Sometimes though the call would come very soon after a REIN and the client would complain. If you hold it long term and not called, all is well. Sometimes corps will jump on refinancing options when they can do it at lower costs. I have seen examples though where the premium was much greater than your case. I recall than some of the Pimco CEF's were selling a over 50% premium to NAV which was insane some cut the div and the value dropped to be more in line with NAV. Mt personal preference was to reinvest the growth part of my portfolio and use the income from the yield portion to fund other purchases On a high yield, security, if you take the distributions in cash, you build a cushion over time in case something dire happens. That is not the case if you reinvest.

To: Graustus who wrote (31058)	4/10/2019 1:24:43 AM
From: maverick61	1 Recommendation Recommended By Graustus Respond to of 34328

You are correct in the scenario you spell out. I have bought a couple illiquid preferred issues well over par. They were long past their call date when I bought them but the companies seem to have no desire to redeem them. I have since pocketed enough dividends to make up the premium I paid and then some. I am happy top sit and collect over 6% from these for however long I can. That said, on other preferreds, I typically time my buys when they are under par or possibly just slightly over depending on the issue unless there is a good reason to pay more. Some people get too hung up on the $25 par price. I look at multiple factors, price, dividend rate, first potential call date, likelihood of a call, safety of the dividend, etc