I’m a bagholder of Ready Capital Corp (RC). But you know what? Sometimes being a bagholder of a high-dividend stock isn’t the worst thing in the world. If I weren’t a bagholder, I probably would have sold it earlier. I don’t sell stocks at unrealized losses—that’s just not my style. So, I’ve decided to keep it.
I bought RC at $8 per share, and on Friday, it closed at $7.45. That’s a drop, sure, but RC just announced its quarterly dividend of $0.25 per share, payable on January 31 to shareholders of record on December 31. Historically, this stock pays dividends four times a year, with ex-dividend dates in March, June, September, and December. Here’s why, despite the drop, I’m still holding on and even seeing some positives in this situation.
1. The High Yield Makes Up for the Drop
Let’s do the math. At $0.25 per share, RC’s annualized dividend is high even at my purchase price of $8, which is better than most other investments I’ve come across.
Sure, the stock price has dipped, but that high dividend yield softens the blow. I’m earning cash from the stock just for holding it—something not all investments offer.
2. Selling Early Would Have Meant Losing Dividends
If I had panicked and sold earlier, I would have missed out on multiple dividend payouts. While RC’s stock price hasn’t thrilled me lately, the dividend income is real money in my pocket. Each payout reduces the sting of the unrealized losses and gives me a reason to stick around.
3. Patience (and Dividends) Pays Off
I don’t like selling at unrealized losses because, in my experience, the market eventually turns around—especially with income-generating stocks like RC. By holding onto RC, I’m giving the company time to recover in price while still enjoying a high dividend yield. It’s not a glamorous strategy, but it’s working for me.
4. A Consistent Dividend History Adds Confidence
RC has been consistent with its quarterly dividends, which builds my trust in its ability to generate cash. Ex-dividend dates in March, June, September, and December make the payouts feel predictable. Even if the stock price remains lackluster, this steady income stream gives me something tangible to look forward to.
5. I’m Not Alone in Choosing High-Dividend Stocks
There’s a reason high-dividend stocks are popular. They’re not just about capital gains—they’re about cash flow. While the stock price fluctuates, the quarterly payouts offer stability in an otherwise volatile market.
6. It’s a Learning Experience
Being a bagholder isn’t exactly fun, but it teaches patience. It’s helped me understand the importance of having a clear investment goal. In this case, my goal was to invest in a high-dividend stock, and RC is delivering on that front, even if the stock price isn’t ideal right now.
7. Why I’m Still Comfortable Holding RC?
At the end of the day, RC’s high dividend yield and consistent payouts are enough to keep me holding. The unrealized loss is there, sure, but as long as I don’t sell, it’s not locked in. Meanwhile, I get to collect those dividends and wait for a potential recovery.
Final Thoughts
Being a bagholder of RC hasn’t been a perfect experience, but it’s not all bad. The high dividend yield makes up for the unrealized losses, and the company’s consistent payouts give me confidence in my decision to hold. Sure, I wish I’d bought in at a lower price, but for now, I’m making the most of this investment—dividends and all.
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