2 Comments

WATCHING PAINT DRY. BUY GOV

December 7, 2013

SPY 1809.00

SPY is 1809, almost exactly the same as my last post on November 23!!!  Do you like watching paint dry?  I mentioned back in November that we might see a pullback and that’s what we got. But….we are now back where we started.

So I suggest doing nothing…..altho a potential buy is listed below.  This is the great thing about dividend investing.  You can sit around and watch while the dividends come rolling in.  Nice.  No trading and worrying about day to day fluctuations.  IF you are invested in good stuff, there is no worry.

So, now what.  The markets were up strongly Friday and we will have to see what happens on Monday.

There is a position that I suggest you look at.  Government Properties Trust (GOV) pays almost 7%.  I know you don’t want to hear anything about the government right now, but in this case, it’s a good thing.  Here is a short description of GOV from seekingalpha.com:

“GOV has a $1.7 billion investment portfolio (historical investment basis) with 84 properties in 31 states and Washington D.C. containing 10 million square feet. The tenant mix includes 34 U.S. Government agencies, 27 state government agencies and the United Nations. Around 94% of annualized rental income is paid by the U.S. Government, 10 state governments and the United Nations.”

Essentially GOV is a REIT that leases space to the government…….. and Uncle Sam pays his bills!!  I have owned GOV forever and I suggest buying up to 4% of your portfolio.  If you want more information, there are a number of good articles on seekingalpha.com which talk about GOV.

Floating rate bond funds are also looking good.  PFLT, BKLN, VVR, FRA are some choices.

btw If you hold medium or long term bond FUNDS sell them.  This is NOT the time to buy mid and long term bond funds.  I like INDIVIDUAL corporate bonds but the rates are very low.  I continue to look for prospects.

Do NOT buy annuities.  They are a scam.

Finally finished Double Down Game Change, the book about the recent presidential election.  You get a great sense of what really goes on behind the scenes.  Fun to read.

Go to “HOME” (top of page) for the most current posts.  Go To “+FOLLOW” (top of page) to follow this blog.  Go to “INVESTMENTS” (top of this page) for core holdings. 

This blog discusses dividend paying investments that I find appropriate for myself…..and for investors seeking dividends and income.  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.

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2 comments on “WATCHING PAINT DRY. BUY GOV

  1. Have you ever looked into Calamos Global Dynamic Income F (CHW)?

    Or something similar?

    • I own CHW. It is OK to buy a small position right now. Thanks for contributing. (I just noticed this is going ex-div today. Try to buy at lower prices) (Update: Momentum is still down. Wait for lower prices.)

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