Back in July I did a small investing experiment.
Despite all the alarms around this company, I bought a few stocks of a company called TICC.
Main reason for this was: I had not enough capital left to buy a blue chip stock, but the 12% dividend also looked very attractive.
This extremely high yield obviously has its reasons. The stock has been declining ever since I bought it.
Bought it at $9.80 and I sold half a year later for $7.44.
Total dividend paid: $1.16. Net result: -$1.20.
Lessons learned: don't invest in companies with extremely high dividend yield. Not even when they have more than 10 years of dividend paying history.
Despite the loss, this lesson seems to be much more valuable than this single dollar.
Have you had any risky operations going?
Thanks for reading!