05-29-2013, 08:17 PM
Trouble indeed. Now it is below $14.00. Groan.
I'm not really worried -- my thesis on this one still holds and I'm going to keep holding the stock. By value, NLY is less than 4 percent of my portfolio, but it accounts for a little over 11 percent of my dividend stream. It is higher risk than most items in my portfolio, but that is exactly why it is in there -- to juice my returns. But it does take an oversize chunk of my attention. I definitely do not agonize over my JNJ, which is more than 12 of my portfolio by value.
I think the real reason that NLY bugs me is that its current price is solidly below my average price per share. (Luckily I have only 2 stocks in that bucket.) I don't mind price swings nearly so much when I've got a nice low entry price.
I'm not really worried -- my thesis on this one still holds and I'm going to keep holding the stock. By value, NLY is less than 4 percent of my portfolio, but it accounts for a little over 11 percent of my dividend stream. It is higher risk than most items in my portfolio, but that is exactly why it is in there -- to juice my returns. But it does take an oversize chunk of my attention. I definitely do not agonize over my JNJ, which is more than 12 of my portfolio by value.
I think the real reason that NLY bugs me is that its current price is solidly below my average price per share. (Luckily I have only 2 stocks in that bucket.) I don't mind price swings nearly so much when I've got a nice low entry price.