Originally Posted By: Oldmoparguy1
Hi folks,
I have been retired for many years and am partially disabled.
I currently have $10k cash available in my IRA. I'm looking to buy something with a max dividend. I have been looking at a number of high div stocks and ARR may be a good option. I expect to keep this stock for up to a year because I will need $6500 sometime next year. Reason for this is that I withdraw the max each year and deposit it in my wife's IRA. Because of our age difference, I can do this for another 3 years. So far, I have moved $30,500 in this way.
Let me add that I have a comprehensive financial plan and a good income stream right now. My wife works full time and is planning to retire sometime after Feb 2015, so we don't need any additional income.
I would appreciate any info/suggestions anyone may have.
Wayne
Im not sure that putting all eggs in one basket (e.g. single stock) is a good move, but diversification also will also potentially reduce your yield. If you diversify to different industries, some will obviously yield better than others.
One can argue that ARR is pretty far down in the dumps, and may not have much more downside - but it could also slash div. Still, as one stock of many, you may be doing OK.
Id probably look to diversify between something financial (ARR or equiv), something shipping (NMM?), something energy (LINE/LNCO?) and maybe some kind of utility stock (SO? AT? etc).
Rising tide raises all boats, and sinking tide does the opposite, so you still have risk, but you have less risk than exposure to one industry or company.
Another option is an ETF that specializes in div paying stocks or something else with a yield (emerging market debt??).
But do your due diligence and be comfortable with what youre buying, dont just go off of tickers or ideas that someone posts up...