RE:RE:RE:RE:RE:RE:LBS on sale again today
Hi W.O.F. not sure if you read all info on the Brompton web site. If you want a secure return on your capital without being at risk of market ups and downs you buy preferred.
You get only the quarterly div.. Buy a share roughly at 10$ and sell it at $10 (no capital gain / loss).
If you wish to make more money but be at risk of markets fluctuations you buy A shares. As an example, If market move 2% for banks you can move 4% (up or down). Just need to look at charts.
It is less risky to buy on dips or market drops......this way your share price remains positive while you enjoy a monthly distribution return. At each monthly distributions timing, there is a play of people wanting capital gain versus distribution. At each overnight offering same movement people getting out and some getting in...lowering avg cost or adding.
Whenever you invest in a stock that provides a good div., there is a risk to nullify your yearly div when a sharp drops happens to stock price...........so two choices move out or add.
My feeling is that you would like us to convince you it is a good play. I guess you need to decide if banks are solid enough to go through market drops and come back if you are long term. Or play safe buy pref. and have almost no risk on your investment while getting a 5.5% / year.