On March 31, 2020, I bought 260 shares of Washington Prime Group (WPG ) at $0.861 per share. I'm looking either this stock will go bust or will rebound like a bandit.
I first bought this stock back in 2018 paying $6.26 per share, I have been then selling occasionally puts on it (strike price $5) and have acquired some more ever since.
Starting mid-2019 I have been looking on WPG with suspicions, and thinking to find a good exit point, unfortunately, it has never bounced back. And in March 2020, during Covid19 lockdown, it collapsed down under $1 dollar per share
WPG share price April 1, 2020
Prior to this new purchase, we had 240 shares of WPG and my cost basis was $5.95 per share.
By adding 260 (more than doubling) shares of WPG I managed to decrease my cost per share down to $2.92.
With dividend slashed (twice( to 0.0625 per share this latest buy has a dividend yield of 29% and will pay us $16.25 (before tax) every quarter.
For the rest of the year, we are looking to take $41.42 (after tax) from this buy, which is about 1.15% from our $3,600 goal for 2020
In total WPG now contributes about $106.25 (after tax) yearly to our dividend income portfolio.