Tired of not getting paid for your money, and not wanting to gamble either? Here’s your trade on MGM Properties ($MGP) (March 06, 2020)
TNX--X SP-500 TNX--X MGP
I remember when the 10 year ( INDEXCBOE: TNX ) was actually paying about 7 percent as opposed to .07 percent, less than 1 percent that it is paying. Back when it started trading right around in 1996 here, we were paying over 7 percent so this has been a heck of a ride here. By the way, what have equities done in that period of time? Basically, ( INDEXSP: .INX ), they have just gone no place but up.
So what are we going to do here? Here’s the thing: You can’t argue with the fact that money is about free; when you are getting paid less than 1 percent, like when you are getting paid 0.7 of 1 percent to tie up your money. For 10-years you put in $10,000 and you get like $70.00 back each year, that’s not too good.
So what are you going to do? You can do something like this: Put some money into MGM Growth Properties ( NYSE: MGP ); you got it right it’s MGM. This is the company, the LLC, that actually owns the land that all of their casinos rent. They pay a pretty hefty dividend, like 10 times what the 10-year pays. And they have absolutely just taken it in the shorts over the last couple of weeks, down 25 percent at one point.
If I was just trading a stock looking for an oversold rebound this would actually be one that I would look at. I can see how the stock traded. It and up just like everything else did into at the close.” My low, my drop dead on this stock is about $26.00. So I am buying this stock at 27.00-27.05, whatever it is. Give it about a 4 percent risk.
I kind of like my chances for making money. Once the stock starts moving up, if it just moves up to $28.00, that’s 3 1/3, whatever, percent right there. That is half of your annual dividend just in a nice little capital appreciation bounce. If you are trading fairly actively this is a stock that you can look at.
On the other hand, if you have got money that you are kind of looking for a place for, where you want to get paid something other on a treasury note, put it in MGM Properties ( NYSE: MGP ), give yourself a stop a little bit below $26.00, this is going to be a good trade for you.
Free Chart