I just bought 1000 shares of Washington Prime Group Inc. (WPG) for the dividend.
Now that I’m working on my new portfolio for Wealth Builder I’m doing a lot of research into good dividend stocks. The new portfolio will hold stocks that pay a nice dividend. I want them to be high rated stocks with a long history of paying dividends. Companies can cancel their divided at any time. The high rated stocks with a long history of paying dividends are less likely to cut or reduce their dividend payments. These are the types of stock I’m looking for.
The stock I bought today, Washington Prime Group (WPG), is a high dividend paying stock, but in no way is it a high rated stock and will not end up in my new dividend portfolio.
This is a gamble play, and I do not recommend it for anyone. I only bought the stock because I had such a great year and I have extra money in my account.
So, what made this stock attractive enough to take this gamble?
WPG is a low priced stock that has been beaten down for a while now. I bought 1000 shares at $3.56 per share. My total investment is $3560. I do not expect the stock to get much higher, I’m in it for the dividend. At my buy-in price the dividend is a whopping 28%. I did dividend reinvestment so I’ll receive shares as my dividend. Quarterly I’ll get $250 worth of stock put into my account, $1000 worth annually. There is a chance the company will cancel, or lower this dividend, but at such a low price and a great dividend I figured it was worth the gamble, and it is a gamble!
The stock is held in 5 real estate and high dividend EFT’s. It’s also held by some very big Hedge Funds including Black Rock Inc, Vanguard Group Inc, State Street Corp, Charles Schwab Investment Management, Bank of NY Mellon Corp, and many more. If I’m gonna go down with this one I’ll be in good company.
Buy 1000 Shares WPG @ $3.56
My hope with this investment is the stock holds it’s price, the stock is able to hold it’s dividend, I receive dividend shares, I collect a dividend on my original investment, in addition, on my new share I received as dividend payment. I call this “double dipping”.
Successful trading,
Steve
The Options Coach