(10-03-2021, 08:08 AM)bankerboy Wrote: I might when I get closer to retirement however!I like ENB as well in that space. Like Crimson I don't think value traps, or high dividend stocks are generally in our best interest long term. I think they are a horrible idea for a young investor. I did experiment some as I enter retirement soon. I need to mix things up because I'll get it wrong if I go all in on DGI, growth, or whatever.
Sent from my iPhone using Tapatalk
I was leaning T-ENB and (MO or BTI). T is kicked out already, and tobacco makes me nervous for a longer term hold. The one thing these high yielders seem to share is constant drama. I would never feel comfortable not tracking a large position. My hope was a correction gives us some choices that yield well over 4% with more possibility of growth.
In any event, if you buy a value trap after it has already dropped, there is a chance you can later rotate it to another stock of higher quality when it gets hit. It's not like sitting on cash of course, but high yielders have their weeks when they are popular and outperform when the market is getting roughed up. They are somewhat defensive. I also average into yield traps with bad charts. BTI looked pretty good at 38 just a few months ago but I am glad I didn't load up so I could finish the position later. When a stock is in an obvious downtrend I rarely regret going slow.