Interesting (boring?) stock that pays a 6% monthly dividend.

[MarathonMike]

I'm researching stocks that pay a monthly dividend and came across GAINM (Gladstone Investment). It's been around since 2016 and the stock price has been virtually flat. They invest in mature debt and businesses but not start-ups, so their model is very risk averse. I've got some CDs maturing and thinking buying this stock and some others paying monthly dividends. Thoughts?

 

[ReinyDays]

That's 6% annual return ... not monthly ... just glancing through the Marketwatch page seems to imply these are derivative stocks based on corporate bonds ... generally speaking, bonds have lower risk-of-default, but higher interest-rate-risk ...

How old are you? ... I ask because if you're young, you can take more risk-of-default, you still have many decades of earned income before you ... if you are old, near the end of your working life, you'll want to avoid risk-of-default ...

Are you already contributing the maximum amount in your retirement plan, IRA or 401(k) etc? ...

Mortgage Backed Securities are red hot right now ... don't be afraid of them ... just keep an eye on mortgage lending practices ... banks are being super careful about this now so the MBS' are a sound investment ... I'd say an important component of your diversified portfolio IMEIO ...

Asking for investment advice over the internet ... you are NOT risk averse ... ha ha ha ha ...

 

[MarathonMike]

That's 6% annual return ... not monthly ... just glancing through the Marketwatch page seems to imply these are derivative stocks based on corporate bonds ... generally speaking, bonds have lower risk-of-default, but higher interest-rate-risk ...

How old are you? ... I ask because if you're young, you can take more risk-of-default, you still have many decades of earned income before you ... if you are old, near the end of your working life, you'll want to avoid risk-of-default ...

Are you already contributing the maximum amount in your retirement plan, IRA or 401(k) etc? ...

Mortgage Backed Securities are red hot right now ... don't be afraid of them ... just keep an eye on mortgage lending practices ... banks are being super careful about this now so the MBS' are a sound investment ... I'd say an important component of your diversified portfolio IMEIO ...

Asking for investment advice over the internet ... you are NOT risk averse ... ha ha ha ha ...

There are knowledgeable successful stock investors on this board and I am one of them. I am retired and have greatly reduced my stock exposure. This stock in particular seemed to be very stable with a monthly dividend and yes of course I know that was an annual 6% yield.

 

[HaShev]

This volatility can be a blessing to those who are trying to get money off the sidelines back into the market.
Forced selling and liquidity stock plunge anomalies often occur that allow you to get into those stable exchange traded stock funds and divy paying capitalization co's at an extreme discount or range low that sometimes occur in a flash and never ends at the huge discount you get in at, therefore place bids 20 and 30% discount to where the price has been trading and enjoy those anomalies when they occur by getting into those good steady payers at unusually low entrance that will give you stock price growth along with the steady income. I have my favorites that do this almost yearly or bi-yearly, and have often added an extra 20-40% to my dividend this way. Example: I've made 25% 1 day gain from an unusual drop in a utility fund, 20% in a day from a drop in a grain fund, both poped back the same day.
Those industries never move more then fractions of a percent, yet the anomaly occured by position dumps perhaps thanks to etfs and funds forced to sell.
Volatility can be played to your advantage this way and make up for your declines and get you in your positions at safe absolute lows.