Today I initiated a position in Orchids Paper Products.
- TIS: 100 shares @ $23.30 --- Yield 6.01% (initial position)
Total capital invested is $2336.95 which will increase my yearly dividend by $140.00.
I originally learned about the company about a year or so ago from one of Dividend Mantra's posts. I have never invested in a thinly traded company before, so I had no idea what the trade price would be looking at the bid/ask screen. It was bidding $23.20 and asking $23.80 this morning so I decided to use a Limit Order this time. I put my order in at $23.30 and it finally picked it up thirty minutes later.
This in my opinion is speculative and the dividend growth as of right now in non existent. However I am willing to roll the dice with these types of investments and at 6% yield I feel the risk reward is justified at this price.
I keep telling myself to stay away from companies like MAT, ESV, and TIS and I have been for the most part this year. I just get the itch every once in a while to jump into the speculative side of the pool and here I am once again.
Feel free to give me your opinions on this purchase: Thumbs up or thumbs down??