Monday, January 7, 2013

Looking Muni?

This weekend I was looking over some of my investments and looked at my Muni stocks.

They have risen to the $111.25 level, a good return in that I bought at the $101 region and they have been giving me a good return too. Around 2% which equates to around 4% if you allow for taxes, Muni stocks often carry tax free status, though this is possibly in question as Washington DC continues to struggle with their finances.

This is leading me to question whether to hold or sell my muni stock.  Hold it and face the loss of attractive returns in a low yield market or hold and face losing cash when and if the dividends attract taxation.

EEEk. Not that old dilema again. Take the profit or face a possible fall from a great height. The investors eternal dilema. Witth this I don't want to do the old fatal trick and fall in love with this stock, but the returns are still good.

As well as some DRIP investing on the muni stock itself the monthly returns have boosted my cash flow to fuel purchases of lots of other stock.

I will hold for the moment but keep an eye on D.C. for their moves.

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