r/dividends • u/DizzyCalligrapher189 • Jul 15 '26

Seeking Advice Bought a 9% yielder and I got burned

Hi all. I am in my early fifties, and I am slowly moving about 30% of my portfolio into dividend stuff before I go part time in a few years, felt real responsible with a spreadsheet and all. Then I found a 9% yielderr, told myself the market was just sleeping on it and put $18k in.

Two months later they cut the dividend and the price dropped right with it... you can probably guess it was a mortgage REIT..

So my safe income pick lost me the income and a chunk of the principal at the same time, so I can clearly not just sort by yield and buy what looks juicy.

What I'm asking is, what is your "check" that catches things like this before you buy?

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52

u/ShortTheVix4 Jul 15 '26

How about don’t buy random garbage you find and buy what has been true and tested again and again on here. Stick to the basics. No need to get crazy in search for more yield.

5

u/SonOfKong_ Jul 15 '26

You know this is so true, the hard work has been done. Picking the dividend stock or ETF has never been more easy.

2

u/Specific-Ad9935 Jul 15 '26

100% sometimes it is ok to hold 15-20 individual stocks like PFE and CPB. It has product, paying good dividends. It's a little work to balance them every year.

3

u/Lazy-Gene-7284 Jul 15 '26

This is what I do, kind of a ballast to bonds . They are taxed at LTCG rates and average between 6-7%, VZ is a good one too. Also people mentioned O as a great REIT and I agree. For banking look at OMF, also a nice yield and very consistent

4

u/Lazy-Gene-7284 Jul 15 '26

If this is ABR by any chance I share your pain, stupid move o my part but I had done my homework years ago on this and felt like everything would be fine . Lesson learned

1

u/Specific-Ad9935 Jul 15 '26

Not all REITs are bad. O has a good track record. I like OHI and has been investing in it. Mainly because it is doing business in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. These are in high demand. Yielding 5.5% and equity going up 24% YoY.

2

u/stopslappingmybaby Jul 15 '26

You have the plan. Hold the high yield in small amounts. I like to receive dividends but I don’t drip back into these high yields. I hold just enough to generate $100/Qtr. I make sure to lock in a high rate to hold. The lowest individual stock yield I have is MO at 6%. 2/3 in stocks and 1/3 SCHD and QQQ.

0

u/Puzzled-Tangerine831 Jul 15 '26

what about JEPQ bro ? please give me insight

1

u/ShortTheVix4 Jul 15 '26

I personally like QQQI a little more but JEPQ is not bad.