Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?Yesterday I bought some more shares of Washington Mutual (NYSE: WM) at $39. Basically, I had to put my money where my mouth is because I have written about it as a safe haven and a defensive stock so often. Now with the sub-prime lending ruckus filling the headlines and driving the stock price down I thought I would take advantage of the fear in the market place. This is another wonderful stock for long term investors.
If you have money in a WaMu CD at the Online rates (which are higher than walk-in) you are receiving a smaller return on your investment than if you bought the stock which currently is yielding 5.56% - and you have no future appreciation.
| WaMu Online CD - California | ||
|---|---|---|
| Terms (Months) | Interest Rate* | Annual Percentage Yield (APY)* |
| 5.27% | 5.40% | |
| 4.98% | 5.10% | |
| 4.07% | 4.15% | |
| 4.07% | 4.15% | |
| 4.12% | 4.20% | |
| 4.98% | 5.10% | |
There is no question that WaMu could drop further and that may have been able to buy it at a lower price. I have no idea where the bottom is, but for those of you interested in watching this one and possibly seeing long-term gains plus current income consider the following data points:
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
