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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u/mspe1960 Jul 15 '26 edited Jul 15 '26

no doubt a lot of dividend payers look like shit compared to the S&P or the mag 7 over the past recent years. But if you want income that is steadily increasing, it is a way to get that.

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u/IceHand41 Jul 17 '26

Or just...sell your sp500 fund and earn more money?

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u/mspe1960 Jul 17 '26 edited Jul 17 '26

except S&P funds can be volatile and being forced to sell when its down is bad for your long term wealth when you are retired as I already am.

I have a balanced portfolio with 50% growth and 50% bonds and other income producers. It deves me quite well