NLY is doing well

[ken-do-nim]

NLY is on quite the tear.  If you look at the 1 year chart, it started at $6.13 and has risen steadily until its current $8.91.  The current yield is 10%, but as the price goes up, I wonder if they will increase the dividend.  Stay tuned!

(In a ghost of portfolios past, I used to have $25K in this, and those quarterly dividends were awesome.  Now I just have a tenth of that.  Still, my favorite 'value trap'.)

[fenders53]

(03-26-2021, 11:51 AM)ken-do-nim Wrote: NLY is on quite the tear.  If you look at the 1 year chart, it started at $6.13 and has risen steadily until its current $8.91.  The current yield is 10%, but as the price goes up, I wonder if they will increase the dividend.  Stay tuned!

(In a ghost of portfolios past, I used to have $25K in this, and those quarterly dividends were awesome.  Now I just have a tenth of that.  Still, my favorite 'value trap'.)

I think we all have a favorite value trap. They are great for developing our critical denial skills.    I'm tired of mine so I'll give it a look lol. It's on my watchlist now. Looks like a possible candidate for a dividend scalping option trick if I knew about it a little but farther in advance of Ex-Div date. I'm going to give it a shot today but I doubt the trade will drop on my terms on options expiration day. It will probably work in the future so thanks. They'll be OK with modestly rising rates assisting them.

[ken-do-nim]

Just returning here to say many of my 'value traps' are doing quite well. NLY is up to 9.31 from 8.23 at the start of the year. AGNC is up to 18.47 from 15.39 at the start of the year. OXLC is up to 6.89 from 5.50 at the start of the year. I wonder how long this will keep up.

[fenders53]

(05-18-2021, 11:35 AM)ken-do-nim Wrote: Just returning here to say many of my 'value traps' are doing quite well.  NLY is up to 9.31 from 8.23 at the start of the year.  AGNC is up to 18.47 from 15.39 at the start of the year.  OXLC is up to 6.89 from 5.50 at the start of the year.  I wonder how long this will keep up.

Keep believing but you are gambling.  It comes home to roost when you don't expect it.  There is no long term  crazy high free yield if you aren't growing revenues.  Tell me about the free cash flow they are generating and I'll read up.  How are they returning 6X the safe treasury yield?  You are witnessing speculation and yield chasing.  Show us a ten year chart.  The experienced investors here would be all in if we hadn't seen this movie many times before.  
  

Serious question.  What is $10K invested in NLY 10 years ago worth now? I don't know the answer.  How does it compare to SPY? I don't care about three months.

[ken-do-nim]

Darn, there was a website I used to use that told you exactly that; how much $10k invested 10 years ago would be worth now and compared it to the S&P 500 in that same time frame. I'll keep looking. Something like NLY is too tough to work out otherwise because the dividend compounding is what is going to give it a boost. I'll keep looking.

In the meantime, I'm sure you're right, which is why I wrote, "Wonder how long this will last". When I bought them, I expected them to plateau at best, so the price increases have been a pleasant surprise.

[ken-do-nim]

I found it!!!!!!

https://dqydj.com/stock-return-calculator/

Investing $10,000 in NLY 10 years ago produces $16,544.78
Investing $10,000 in JNJ 10 years ago produces $34,393.92
Investing $10,000 in MSFT 10 years ago produces $125,944.32
Investing $10,000 in SHOP 10 years ago produces $638,241.18

[fenders53]

Better than I thought actually. Not a fair fight against growth stocks but JNJ isn't a bad standard to measure against. Nobody thinks they will BK and few expect much growth but they find a way.

[ken-do-nim]

Gosh this site is so much fun. One of my 'value traps' beat JNJ!

Investing $10000 in HTGC 10 years ago produces $38,091.87

Also, ABBV crushes JNJ too

Investing $10000 in ABBV 10 years ago produces $47,020.66

****

And what I really want to know is how my company stock fares ...

Investing $10000 in PEGA 10 years ago produces $66,663.84

Now against your company stock!

Investing $10000 in HD 10 years ago produces $108,953.27

Ah, you crushed me!

[fenders53]

HD is a tough comparison. Many stocks 10X. Those that do starting after they are 30yrs old are very rare. The majority of SP500 stocks are probably on the downhill slide by them, or at least growing very slow.

[ken-do-nim]

Hey let's do some telecom / utilities / transport! (multitasking during a meeting lol)

Investing $10000 in NEE 10 years ago produces $17,350.38 (can this be right?)
Investing $10000 in T 10 years ago produces $17,953.22
Investing $10000 in ED 10 years ago produces $21,884.91
Investing $10000 in D 10 years ago produces $24,388.11
Investing $10000 in VZ 10 years ago produces $25,126.23
Investing $10000 in XEL 10 years ago produces $42,303.02
Investing $10000 in WEC 10 years ago produces $43,649.15
Investing $10000 in UNP 10 years ago produces $59,932.66
Investing $10000 in AWK 10 years ago produces $65,898.56
Investing $10000 in CP 10 years ago produces $73,690.98

[fenders53]

NEE can't be right. May have missed split.

[ken-do-nim]

(05-20-2021, 11:28 AM)fenders53 Wrote: NEE can't be right.  May have missed split.

Oh I can see from the chart the website most certainly did.