Investment Recommendation

[renferme]

Some of my preferred stock is being called + will receive a few other thousand from a bonus.
Probably adding up to about 12,000 dollars. Would like to receive about $50/month income from it.... does anyone have any ideas where I should invest it ? ?

Best 5 year cd rate seems to be 4.88% from PenFed. Not as appealing since they lowered their rates this month.
And with the Fed. rumored to be raising rates perhaps this summer, bonds don't seem to be attractive either.
Individual stocks could be a choice although dividend rates are not very good. I think I have enough REIT exposure right now. HELP !

 

[Cut-Throat]

To get a 5% return today is not easy. You have to take some risk.

I'm not sure how secure you need this money to be. But one idea is to buy Altria ( Phillip Morris Stock (ticker MO)). It curently is paying about 4.93% dividend and may offer some capital gains. I currently still hold some - The one Individual Stock I still own. I could not bear to part with the dividend.

This is of course if you don't need the money for 10 years.

 

[renferme]

cut-throat,
already own some Altria and love the dividend, but don't think I want to get any more.
BTW, will need the income beginning in June 04, as I'm ERing, officially end of May 04.
thanks,
Ray
ps. you're right, of course, I will have to take some risk.
Perhaps, Vanguard Wellington or Wellesley or Dodge and Cox Balance Fund. I like D&C, their expenses are low and their performances are excellent over the years.
But, still investigating stuff.