(08-22-2021, 08:16 PM)ken-do-nim Wrote: Sorry I've exasperated you, let me respond to your individual points.
> The yield chase trading game is beyond farcical as you dump them when they show themselves as yield traps that most of them are, despite 100 warnings on this forum.
First off, the whole high dividend payers search is part of a 'training exercise', if you will, for building a dividend paying machine that I can use at retirement. I am hopeful that some of them I will be able to maintain for the long term and aren't, in fact, yield traps. Yes absolutely, ORC, AGNC and NLY had to be cut, and in hindsight I was hoping, like Genester hopes now, that at a low enough price, they are worth buying, when that really isn't the case, since they over time continue to erode.
I was actually just asking to be educated - I am not invested in NLY today. That said, If the market corrected 10-15% as many folks expect it will, and NLY is at $6, how is it a trap at that point? Again, it all depends on your perspective - I am looking to park cash in something that acts as a bond alternative with higher yield, and is unlikely to go out of business. I don't need much growth, in fact, would be perfectly happy with no growth and a safe dividend. There is some discussion of Verizon further on - that would also be a perfect stock for this purpose, at the right price. I have the vast majority of my retirement invested in passively managed index funds, so this play is simply because cash sitting in the bank loses value.