Are you scared to put your money back into the market with full-force. Can't say I blame you. As we just received our quarterly dividend from TNK this week I thought I'd introduce you to another dividend play. Gabelli Global Gold, Natural Res &Income (GGN) This one is a for income purposes. It pays .14/share every month. Currently trading at 18.39, it was available around 8 and some change in 2008. Why does this matter, the math is simple and obvious but when you break it out to monthly payments it becomes one of those ah-ha moments.
Would 1500 or 800 a month extra income be better? If you put a 100k in today you would receive 761/month in dividend income (taxable at 15%), if you picked it up in 2008 you would be receiving 1581/month and have 207K in your account (Taxable as a long-term holding).
As I said this is simple month and some hind-sight. By the way GGN has paid .14/month since 2005.
So why do I show this example, TNK is at the same point, trading in the low 8s last week, now back to almost 9 with a high of just over 20 and a consistent support average of around 11.50.
Yes, riskier given it is dry-bulk shipping and you are at the mercy of spot-rates and countries desires to ship goods across the globe, but the dividend is almost 4.5% higher and we are at historically low levels.
Of Course if you put that 100k into Crox in 2008, yes we researched and discussed the potential for it to grow, especially given it's global interest. You would have been able to pick shares up for about a buck and holding till today you could have sold for aroudn 28... Yes, we have watched, researched and recommend several of these to inlcude F, LCC, FAS and FAZ, ATSG, ACTC.OB, ITMN (X2), GMCR... etc.. etc.. etc..
Now, we are probably past the times of long trade triples, 10X etc... but Options Trades certainly get us close and putting that hard-earned cash into dividend income equities is our new strategy to wealth.
Happy Trading...
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