The dividend shuffle game?

[fenders53]

I'll try to remember to watch it.

[NilesMike]

Order set to take off ABBV Debit Call spread 118/119. Hopefully the overnight bump gets me filled for 50% return, since Monday, fingers crossed.

[fenders53]

(07-29-2021, 06:32 AM)NilesMike Wrote: Order set to take off ABBV Debit Call spread 118/119. Hopefully the overnight bump gets me filled for 50% return, since Monday, fingers crossed.

I'm rooting for you.  I need to put ABBV in my game plan at the next opportunity.

[mid range]

I'm new and I don't know if preferred stocks and baby bonds have been discussed as far as dividend capture. Since they are low beta in comparison to the common they are based on, they are more predictable. There are different varieties of these stocks and so a learning curve is involved. Some have a fairly near term call or maturity date. They can be recalled by the company after their call date and will be called on their maturity date for their par value, which is usually less than they are currently trading for. Solid issues with a 7% dividend are traded so there is no problem that the dividend is too small. Free registration at quantumonline dot com will give you loads of info. Check their tables. Always double check for the ex-div date on any of these you trade. If you like to build spread sheets and screen for stocks, this might be for you.  
I kept these things in mind when I traded preferreds, but didn't take it to the level of importing data to spreadsheets. I no longer trade preferreds.  My wife's account has Gabelli preferreds GGT-E, GGZ-A, GUT-A, GUT-C as well as UMH-C, UMH-D and UNMA. They have been in her account for years and were purchased below today's cost. So i don't believe they are values today because of price and they are callable or getting close to call date.

[fenders53]

Preferreds and bonds in general have been discussed very little here. Most of the active posters here are in their accumulation phase so commons seem more attractive to them for the CAP appreciation potential. The closer I get to full retirement, the more I want to educate myself. Low interest rates are going to put a lot of pressure on higher yielding funds. Some due diligence will be required to ensure I don't enter at the worst possible time. My one remaining preferred fund has run up to a point where I am uneasy buying new shares.

[rayray]

(08-01-2021, 06:23 AM)fenders53 Wrote: Preferreds and bonds in general have been discussed very little here.  Most of the active posters here are in their accumulation phase so commons seem more attractive to them for the CAP appreciation potential.  The closer I get to full retirement, the more I want to educate myself.  Low interest rates are going to put a lot of pressure on higher yielding funds.  Some due diligence will be required to ensure I don't enter at the worst possible time.  My one remaining preferred fund has run up to a point where I am uneasy buying new shares.

i have a couple of friends that have done well investing in preferreds, one has been doing it since 2004 with good results.

that site mentioned quantumonline is really good, you have to register but it's free--it's been a while since i checked it out but like ya said most of us are in the accumulation phase

being 50 at the moment i'm not sure i'll ever be out of the accumulation phase--it might be a mix of growth and value stocks whether they pay a divi or not for perpetuity

[fenders53]

(08-01-2021, 07:50 AM)rayray Wrote:

(08-01-2021, 06:23 AM)fenders53 Wrote: Preferreds and bonds in general have been discussed very little here.  Most of the active posters here are in their accumulation phase so commons seem more attractive to them for the CAP appreciation potential.  The closer I get to full retirement, the more I want to educate myself.  Low interest rates are going to put a lot of pressure on higher yielding funds.  Some due diligence will be required to ensure I don't enter at the worst possible time.  My one remaining preferred fund has run up to a point where I am uneasy buying new shares.

i have a couple of friends that have done well investing in preferreds, one has been doing it since 2004 with good results.

that site mentioned quantumonline is really good, you have to register but it's free--it's been a while since i checked it out but like ya said most of us are in the accumulation phase

being 50 at the moment i'm not sure i'll ever be out of the accumulation phase--it might be a mix of growth and value stocks whether they pay a divi or not for perpetuity

I have always thought a mix would be best when retired.  I also thought bonds would be a significant part of my port but that doesn't look wise at this time.  I am going to mix my strategies.  That is never a terrible idea IMO.  The one thing I am sure of is I am sure of nothing over a period five years or less.   I will check out that site.

[rayray]

(08-01-2021, 08:11 AM)fenders53 Wrote:

(08-01-2021, 07:50 AM)rayray Wrote:

(08-01-2021, 06:23 AM)fenders53 Wrote: Preferreds and bonds in general have been discussed very little here.  Most of the active posters here are in their accumulation phase so commons seem more attractive to them for the CAP appreciation potential.  The closer I get to full retirement, the more I want to educate myself.  Low interest rates are going to put a lot of pressure on higher yielding funds.  Some due diligence will be required to ensure I don't enter at the worst possible time.  My one remaining preferred fund has run up to a point where I am uneasy buying new shares.

i have a couple of friends that have done well investing in preferreds, one has been doing it since 2004 with good results.

that site mentioned quantumonline is really good, you have to register but it's free--it's been a while since i checked it out but like ya said most of us are in the accumulation phase

being 50 at the moment i'm not sure i'll ever be out of the accumulation phase--it might be a mix of growth and value stocks whether they pay a divi or not for perpetuity

I have always thought a mix would be best when retired.  I also thought bonds would be a significant part of my port but that doesn't look wise at this time.  I am going to mix my strategies.  That is never a terrible idea IMO.  The one thing I am sure of is I am sure of nothing over a period five years or less.   I will check out that site.

it's an interesting site--set some time aside cause you'll be on it for hours, there's a lot of info to digest.

i dumped all bonds/bond funds back in 2013/14 and never looked back

until times change i don't see getting back into bonds/CD's any time soon--maybe not in our lifetimes buddy

[fenders53]

I was never in bonds but it was always the plan at age 60. I will be surprised if they are attractive the next 10. I also expect the FED craziness ends real bad eventually so I will just be ready to adjust then.

[NilesMike]

Bonds, as part of my TYD/UPRO strategy, has worked out very well.

[ken-do-nim]

(08-02-2021, 06:02 AM)NilesMike Wrote: Bonds, as part of my TYD/UPRO strategy, has worked out very well.

I was just reading an article the other day that said if you want to own TQQQ long term, you should pair it with TYD.  Interesting.

[fenders53]

(08-02-2021, 06:02 AM)NilesMike Wrote: Bonds, as part of my TYD/UPRO strategy, has worked out very well.

TYD is down about 15% the past year.  OK as part of a trading strategy but zero interest in holding it.     

Ken, when bond yields are more normal, mid to long-term bonds are a great hedge against equities.  Bond prices run up when rates drop.  Unless the FED goes negative there just isn't much room for bond price appreciating.  This is the first time in my life when cash may outperform bonds for any length of time.  I highly doubt Mike is holding TYD for an extended length of time.