Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
If you have IRA accounts and cash is available you can try to harvest dividends. Specially on Preferrds post dividend the price doesnt' completely adjust meaning, if the price before dividend is 26 and the dividend is 50 cents, post ex-date the price doesn't get to 25.5 but often 25.7 or something like that. It requires you to know the issue and you can do such harvesting.

I have done that. It is time consuming but you get a great annualized yield. Also, many issues trade up in the last 2 weeks before ex-dividend so if you could buy before 1 month and sell right after ex-dividend often you get a good yearly return; I have 3 or 4 REIT preferred's where I do this; All of them are callable any time so the price sort of anchors around $25 and the annual dividend yield is between 7% to 8%.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.