07-09-2014, 08:31 PM
(This post was last modified: 07-09-2014, 08:33 PM by Dividend Watcher.)
(07-08-2014, 11:27 PM)Ok Red Wrote: It's also clear that eventually the LYHG will catch up and overpass the HYLG equity. When that occurs is the pertinent question. For those of us with short time frames to retirement, that is the key.
This struck me as an important factor in the mindset needed to approach these stocks.
If I was 30yo, would I necessarily need the HYLG stocks in my portfolio? From my vantage point, probably not. I don't think it would meet the SWAN principle for me and I probably wouldn't have enough experience or patience to withstand the volatility in price and dividend. As each year ticks off the calendar though, I'm beginning to take more of an interest -- if anything to build up cash in the "Immediate Needs" bucket.
I haven't had time to read any of BDC Buzz's articles yet and don't have access to Wells Fargo research so don't have the nitty gritty details of what I should look for when buying or selling. The concept of how they do business is simple in the abstract but the devil is in the details.
What pertinent statistics do you look at either for the buy or sell side? I guess I haven't fleshed that out yet.
Thanks BHN for the information so far. This section of the market has always struck me as too risky so I've never delved very far into them.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan