Replies to post #299 on insane dividends

[CohibaMan]

Lefty,

I LOVE CETFs. Right now, I would hold off on any of them, as a lot of them are stopping the dividend. BIF is a prime example. What was a dividend paying stock for YEARS, has stopped paying dividends, and may do so permanently. A lot of these funds are having trouble meeting the Basic Maintenance Requirements, since their holdings are tanking so bad, so a lot more funds will soon be forced to stop the dividends. I see a lot more downward pressure on these funds, so if you do want to get into them, the best way is a slow accumulation through something like Sharebuilder.com, where you can buy a set dollar amount per week or month at a flat fee.

Overall, the market has nowhere to go but DOWN, but one day it will start the gradual climb back up. Guessing a bottom is a risky proposition in this market! (Heck, how many geniuses have said Citibank was a steal at $13.00, and look at it now!) I am accumulating some CETFs now by buying through Sharebuilder, in the knowledge that in the short term, I will probably not get any dividends, but down the road, when the dividends start back, I will be a happy camper.

Hope this helps!

[leftyg]

The buying opportunities seem wildly unprecedented. The drops in NAV..the discounts in price to NAV..the unbelievable yields.

They say when things seem too good to be true, they usually are.

At the prices, the dividends could be halved, and still have a nice return.....surely half of American/Global companies are not worthless, are they?

On one hand it seems like a once-in a lifetime financial opportunity. On the other hand...could everything go bad, and buying is the worst thing you could do?

I think by the time this crisis is over I will either be grateful I had the cajones to buy while everyone was selling....or I'm going to be looking for a very cheap trailer home.