PHD Going Ex-Dividend. BUY At $13.60

This blog provides comments and thoughts on the financial markets and specifically—dividend producing investments.

(Updated July 2013)

PHD is scheduled to go ex-dividend on May 14.  This is a long term hold and is a bet for when the next “tightening cycle gets underway” which is probably over a year away.  PHD is a play on rising interest rates and when Bernanke gets around to raising rates. load up.  But NOT now, just hold a small position for the yield.  HOLD your position, do not sell.

I have talked about PHD…here is the link.

(Update June 3:  Click Here)

(May 24 Update:  Investors who had Never even heard of floating rate bond ETFs six months ago are now pouring money into these funds.  PHD is soaring into the stratosphere and is at $14.51.  Every where you look, blogs are talking about floating rate funds.  So what to do.  I am mad as H at myself for not taking advantage of this trend back in December.  If you can handle the risk, buy PHD for a long term hold but realize you may see a temporary decline.  The technical charts are showing PHD is hitting resistance and I simply dont want to boy at the top.  Hopefully we will get a pullback and entry point.

Bernankes comments this week fueled speculation about rising interest rates.  One this frenzy calms down, we May get a pullback.  So I am waiting for more reasonable prices……… which may never come!!!!)

(Update May 23;  Strong support for PHD.  It appears we will not see a pullback to $13.60 as I had hoped.  I would NOT buy at these prices.)

The price will probably drop to the $13.60 area and this would be a good place to buy more, or take a new position.

A single position should never represent more than 1% of the total account.  It pays over 6% and is currently priced at $14.24

(From prior post:  “I was fascinated by a comment that was posted on a financial site that I respect:  floating rate funds are usually purchased by astute investors in advance of interest rate hikes.  The idea is that as the Fed increases interest rates, the dividends paid by floating rate instruments will also increase.”)

SDIV pays almost 8% and would be a good choice right now.

Additional commentary is posted in the right margin under ‘Recent Posts’ and in ‘Background’ and ‘Investments’ at the top of the page.  Bookmark this blog and visit often!

I am not an investment professional.  You must do your own research before buying any position.  All gains or losses that you realize are based on your choices.


5 comments on “PHD Going Ex-Dividend. BUY At $13.60

  1. […] you have not purchased floating rate funds, watch PHD.  It should be going ex-dividend next week and you may be able to get a lower […]

  2. […] If you are not in, buy now..  Since I last mentioned PHD it has stumbled in sympathy with the general breakdown in June.  But you are now getting a bargain price.  Buy now up to 1% of the portfolio.  (See my previous post.) […]

  3. […] See the Update on Floating Rate Funds Here.  I would buy some here, if you dont already own. […]

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