Sunday, January 27, 2013


My big investment this coming week will be to add a position in Cornerstone Strategic Value Fund, Inc.  (CLM:AMEX).  This is strictly a dividend ploy, since I don't expect a great deal of share price movement over the next few years.  However, I do intend to make CLM one of my core holdings for my taxable investment account.  The 18% plus monthly dividend will add a great deal of cash flow to help rebuild my accounts and given what I've seen of their dividend history, I don't think it's an extremely risky proposition.  

As for choosing  CLM over MAIN, it was mostly do to the greater yield from CLM.  At the current dividend yield, it would only take 4 years to recoup all my original investment from CLM.  Although there might be a chance of more capital gains from MAIN, it would take much longer to collect my original investment back in dividends.  Since I think it's more important for me to increase cash flow at this point, I'm going with higher yields over possible capital gains.  A "bird in hand" approach, you might say.

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