Sunday, December 01, 2019

WPG?

      This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start. 

    With a dividend of 23.58% (cost $4.24 with $1 annual dividend), why not just keep it and collect the dividend.

     WPG pays a VERY large dividend not because the dividend has constantly been raised BUT because the stock price had steadily been going down.

     3 and 1/2 years ago the same $1 ($0.25 payed quarterly) represented about a 7% dividend. You would have collected $3.50 in that time but lost nearly $10 in stock price.

     The real problem with the dividend for WPG is I do not believe it is sustainable. I have no problem investing 10% (of my portfolio) or less in WPG. I just do not want it as a long term investment.

     The captured $0.50 ($0.25 x 2 shares) dividend is payable 12/16. My cost of $4.24 - $0.25 = $3.99. Any sale price above that amount will show a December profit.

     It is 3 months before another dividend payout, plenty of time to exit the trade and make money with the proceeds and enter it again should I choose to do so.

Disclaimer, I am not a professional.

   


   

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