- We’ve got a few larger positions in our portfolio. They are generally in shares where the price is quite steady.
- One of those positions is in ARR-C. The shares carry a fixed-rate dividend at 7%, which is a material return in a relatively expensive market.
- The monthly dividend payment can appeal to some investors as well.
- The bigger appeal for us is the low volatility. The vast majority of trades occurred between $24.50 and $24.90, representing a difference of less than 2%.
- We don't expect to keep this position forever. However, the combination of yield and low volatility makes it more attractive in this environment so long as the price doesn't rise too far.
For further details see:
7% Dividend Yield For 7.5% Of My Portfolio