04-08-2021, 10:19 AM
(04-08-2021, 10:12 AM)fenders53 Wrote:(04-07-2021, 03:07 PM)stockguru Wrote:I agree with you on this. The risk reward is out of balance at the extreme ends of trading range. It may well be over a year from now, but US finances have never been here before. Old people hold these high yielders and they have a nervous trigger finger on the sell side at the first sign of trouble. Something will trigger a dip. The yields are high because their is always some financial engineering going on. I get why people are attracted to the monthly payout but a 4% yielding blue chip with a decent chance of a 5% capital appreciation is where the bulk of my income bets will be placed. The high yielders can pay off very nicely if you know when to trim or add shares. I'm out for now. The upside is just not there.(04-07-2021, 02:58 PM)ken-do-nim Wrote: Are we looking at the same RA? It traded in the low 20s basically until it crashed and burned in March 2020, dropping to 13, and it has now climbed back up to 21. Also they haven't cut their dividend recently.
That's my point on RA. Its back to where it was and toped out at $22 which is where it is now. The 5 year high is $22 and with these monthly dividend stocks when they run up this much they tend to correct and give you better buying opportunities.
The 10yr/1yr yield curve has been higher than it is now for most of the past decade, yet STWD is trading near ATH. You'd think 10yrs had popped to 3% yield with 1yr at 0 based on the recent price action.