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Ong Kang Wei

 
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  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi Mantraviz,
    Thanks for your comment. I have just started selling puts so I don't have much experience to speak of. I have recently sold some T, GE and JNJ puts at levels where prices look attractive technically (and fundamentally, but mainly technically). All the puts I sold are currently down at the moment. I'm obviously hoping it stays like that.

    Like yours, my strategy is to sell puts plus-minus 30 days away. I'm fine with things as short as a day or two, if there is opportunity, or if the options decline too much. I'm glad to hear that the strategy has worked well for you.

    All the best & Good luck!
    Kang Wei
    Jan 23, 2015. 07:29 AM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi surfgeezer,
    Thanks for your valuable input. You really make things very clear for all of us.

    All the best!
    Kang Wei
    Jan 23, 2015. 07:19 AM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi surfgeezer,
    Thanks for your input. I agree with you on that one. I'd experienced, first hand, how you lose money at the leveraged rate. Selling puts are a much safer trade in my opinion. Plus, you boost your income.

    All the best!
    Kang Wei
    Jan 23, 2015. 02:58 AM | 1 Like Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi GMWoo,
    Thanks for the input. It is much appreciated. I will be researching more about covered calls as well as LEAPs.

    All the best!
    Kang Wei
    Jan 23, 2015. 01:39 AM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi Moneymadam, Thanks for commenting. I haven't sold covered calls before but I definitely will try in the near future when I accumulate more shares. I know how it works, and I know that it is effective, but $2500 is currently a full position for me. Due to this, not many holdings are above 100 shares. Thanks for the suggestion anyway.
    All the best!Kang Wei
    Jan 23, 2015. 01:38 AM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi hardog,
    Thanks very much for the input. I think I meant to say that I was the underwriter, insuring the stocks for others who bought to put (at a price where I'm perfectly willing to buy the shares at). The message might have got lost due to my phrasing.

    Nevertheless, I do get what you mean, since I'm not insuring the stocks for myself.

    Thanks and all the best!
    Kang Wei
    Jan 23, 2015. 01:35 AM | 1 Like Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hey Daryl,
    Thanks for commenting once again. Wow, what a coincidence! We sure do think alike. :) Yup, maybe we should meet someday too.

    All the best!
    Kang Wei
    Jan 22, 2015. 08:17 AM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi SMJTrust,
    Thanks for reading and for the wonderful sharing on your AAPL options. You sure are very lucky to have such awesome performance- I was actually buying options before I started dividend investing 2 years ago, but the results were disappointing, so I moved on to dividend investing- a more stable investing method.

    Now that most of my portfolio are relatively stable, I am trying out such new, low-risk strategies as you saw in the article. As time passes, I may also consider LEAPS like the ones you bought.

    Anyway, Best of luck in your future investments.

    Kang Wei
    Jan 21, 2015. 08:58 PM | Likes Like |Link to Comment
  • Restructuring My Dividend Portfolio, Part 1: Using Options To Boost Income Flow [View article]
    Hi wallycool,
    Thanks for reading and for the comment. It's much appreciated

    All the best!
    Kang Wei
    Jan 21, 2015. 08:25 PM | Likes Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi Craig,
    Thanks for pointing that out. I meant to say it usually is a large negative to me, given that I am normally particular about dividend growth. But in this case, the fact that it will be paying more both now and in the future offsets a large part of this concern.

    Kang Wei
    Jan 15, 2015. 09:48 AM | Likes Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi Craig,
    Thanks for your comment. I did also mention that "Although it does not grow its dividends, I see this issue as a matter of paying more dividends both now and into the future, instead of paying less now and growing it into the future." in the article.

    Aside from that, I agree with you on all other counts, DNP is definitely one of the few CEFs that pay consistent distributions despite tough times.

    All the best!
    Kang Wei
    Jan 13, 2015. 09:46 AM | Likes Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi Johnny,
    Thanks for the comment. I agree with you on all counts

    All the best!
    Kang Wei
    Jan 12, 2015. 09:54 AM | 1 Like Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi Realtoi,
    Thanks so much for your valuable input. It is definitely a great pick for any DGI portfolio. I didn't know that there's such a discount.

    All the best!
    Kang Wei
    Jan 12, 2015. 09:53 AM | 2 Likes Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi txwoodworker,
    Thanks for bringing that up. I will make the amendments shortly. I am aware of the return of capital that DNP pays out to maintain distributions. DNP is and has been leveraged, but I think it is one of the better funds out there, since it has maintained dividends through the last 2 recessions. I try to find funds like these to reduce my risk of a loss of income.

    All the best!
    Kang Wei
    Jan 8, 2015. 10:35 AM | 1 Like Like |Link to Comment
  • New Addition To My Dividend Compounding Portfolio: Duff & Phelps Income Fund [View article]
    Hi dolson,
    Thanks for the comment. In case you are wondering, DNP generates this income mainly through its income stocks, but when there is a shortfall of cash, it uses three avenues to maintain the distribution. One, issuance of preferred shares and common shares. Two, using return of capital, which is simply returning you a portion of your invested capital- technically not dividends. Three, capital gains on stocks within their portfolio.

    I recently started to add funds to my portfolio for the reason that you stated- they have high yields and some pay pretty consistently, very much like the high quality stocks that pay consistent, growing dividends I am always in search of. For a retired person mainly focused on income, investing in higher-yielding funds instead of individual stocks can be a viable option.

    But one pitfall of investing in funds, in my opinion, is that you do not have control over your portfolio. Many managers trade a lot- average turnover is quite high for some funds. As the famous quote goes, your portfolio is just like a bar of soap, the more you handle it, the smaller it gets. You cannot control turnover. There is also an expense ratio that one has to take note of. These expenses are taking a bite off your returns and income. Many funds also do not have a long enough history for my liking. Three, four years of constant dividends is not enough to prove anything to me. I want to see it go through one recession and yet increase (or at least maintain its dividends), which is truly rare for funds.

    Hence, I would not recommend throwing in the towel entirely even for retired investors. A balance between fantastic, stable stocks and quality funds like DNP will be most optimal in my opinion.

    I hope this reply helped.

    All the best!
    Kang Wei
    Jan 8, 2015. 10:31 AM | 1 Like Like |Link to Comment
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