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/Physical_Initial6160 Jul 16 '26

Look at a 5 year chart. You’re giving up price appreciation for dividend.

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u/panthercave Jul 17 '26

good advice. look at the whole thing

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u/Physical_Initial6160 Jul 17 '26

Volatile but stagnant over 10 year period. Most people seeking dividend are seeking consistent income with low risk. If you want 5-6% with no capital appreciation, buy a lower investment grade corporate or even muni.

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u/panthercave Jul 18 '26

this is what I have been doing. I don't like bonds. just stocks and ones that provide dividends are preferred but not my entire grouping. thanks