Hi Nick,
I'm contemplating cost averaging T. My cost basis in the new account is $35.65. The average dividend rate is 5.5%. If I add 1/3 to my position it would knock my cost down to $34.30. Maybe I should wait till the government stops playing tiddledeewinks with T. The dividend rate is now 6.3%, which would boost my average dividend yield by 1/3 to around 5.9%. Gee that 6.3% dividend sure does look good.
I'm looking at 3 month CD's also in my retirement portfolio yielding 1.9%. Better than what Ameritrade pays, which is about nothing. I decided a while back to aggressively pursue a higher dividend yield and so far that's been working for me. Taking a portion from my City of New York retirement savings yielding around 2.25% and purchasing bonds and dividend stocks yielding a minimum of 4%. Bonds yielding a minimum of 5.15% and stretching stock yields to as much as 12%. I'm happy with that.
Problem is that Having moved a sizable sum I'm not taking full advantage, waiting for buying opportunities in stock and bond laddering. So, I'm going to begin laddering Cd's. at least approximating near my return in my NYC deferred comp plan.
So, Nick, what do you think of this ?
