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ToastedZergling
Jun 25, 2007

Chubby Walrus:
The Essence of Roundness
Right now I'm a bit over invested in my company's stock, due to going through 3 ESPP cycles w/o selling any shares. While I'm up a fair deal, I've been researching some other places I can put at least the 1st third.

I was contemplating high-yield dividend stocks, when using google screener I stumbled upon this one: NLY It's Dividend/Yield is a staggering 0.75/17.21. While I understand that if I were to invest in it now, I'd be lucky to get 17% yields, even if it only pushed out 10%, it'd still be better than the high-yield bond vanguard mutual fund I was looking at. Asides from the normal risks associated with being invested in a real estate / the stock market in general, can anyone tell me what caveats I might be overlooking?

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ToastedZergling
Jun 25, 2007

Chubby Walrus:
The Essence of Roundness

Fuschia tude posted:

Investing a big portion of your assets in any single stock is a really bad idea.

This is why I'm looking to move the money out of my company's stock and into others. I just wanted to avoid short term capital gains on the ESPP stuff, which is why I've held onto it for so long / in such high quantities. I have the rest of my money parked in a few mututal funds.

I think you misunderstood my inquiry, I'm more looking for advice on the stock itself and how it'd stack up compared to investing in bonds. I'm more curious as to why/how this company provides such big dividends? Is there a reason to believe they'll decline greatly? How risky of an investement in this stock be compared to the vanguard high-yield mutual fund I listed? Are there tax differences between stock dividends and bond yields?

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