I've been test-driving an investment in WMC - Western Asset Mortgage Capital Corp.
I spotted this fund as one of the funds posting the highest dividend yields available (currently 31.41%(!!) according to finance.google.com).
Last Friday they reported earnings, and took an 8% drop in stock price. But AFTER posting their $0.45 dividend on 3/30.
I've back-timed this company over the past 4 years, and every quarter, they've had high dividends:
Between 4/10/2013 and today, the quarterly trailing 1-year yield has been between 15% and 35% with an average around 22%.
(see attached spreadsheet).
The Pros: Dividends around 22%!
The Cons: WMC focuses on trading RMBS & CMBS (Residential & Commercial Mortgage Backed Securities).
For those with short memories, MBS's were the investing instruments at the heart of the 2009 housing market collapse.
Face punches, please. Am I crazy for wanting to invest heavily on WMC for a year or so, with the goal of retiring a year earlier than planned? (My current risky investment I already have $3K in OIL via UWTI - currently up 10% since purchase)
MFB