Warren Buffet

7 Stocks for a High Yield Cash Flow Portfolio

Also don't forget that with JPM or any other stock...how about using options?

Thats right sell covered calls against your posityion and get some income there too!

Example I sold back on June 6th when JPM was @ $42.15 January 2009 $50 Call Leaps for $1.90 ticker VJPAJ. granted I've owned JPM for several years and have a low cost basis. But that $1.90 equals a 4.5% return @ $42 per share from June 2008 until Jan expiration or 8 months. or a 6.8% yield!!!!

So the dividends plus the option premium toghter come to a 7.13% in 8 months or 10.7% annualized. now figure in the $8 gain from $42 to the $50 strike???

Bottom Line $8 cap gain or +19% plus 7.13% yield from option premium and dividend yield = over 26% total return from June until January 2009.

But wait...that's if its over $50...if not I keep the premium and do the whole thing over and continue to lower my cost basis.

Get the picture!

7 Stocks for a High Yield Cash Flow Portfolio

In refernce to the posy:::"What about Altria (MO) with about 5% yield and Phillip Morris Intl (PM) with yield just under 4%?"

I also own JP Morgan/Chase (JPM) yielding 3.95% and it just bought Bear Stearns for 10 cents on the dollar back in March...a gift from the fed!

You have to figure that it will leveage that acquisition in the future and you get a good yield while waiting.

Cap gains & a great yield!

Bottom Line: BUY!