Tuesday, March 20, 2012

A 6% Dividend

Where can you earn 6% on your cash these days?

The INGPrime Rate Trust (PPR) is one such source of income.  The Trust specializes in short term loans to major corporations and trades in a range of $5.40 - $5.60 per share.  It has spiked up to over $6 a few months ago and fell recently down to below $5. Now it is back within its normal track of around $5.50

Declaration: The author owns Stock of PPR within his portfolio.

I have this stock within my portfolio for its income potential. The stock pays a dividend monthly and is therefore more like a Bond than a Stock. Current dividends are around 3 cents per share. I have this stock as a long term hold and buy on any fall of the stock below its normal trading range.

At a whopping 6% return on average dividends this stock has maintained a good dividend throughout the past three years. I think you should maybe consider the investment if you think that it might fit in with your investing style.

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