connorport

How Are the S&P's Dividend Aristocrats Performing?

Can anyone convince me not to invest in FTR. Great yield and rebound potential from what i can see. Additional info would be appreciated.

How to Replace Sold Dividend Stocks

I am personally waiting for the next earnings report as i think we shall start to see a stronger GE as they have invested heavily in a down market which makes sense. They are also in line with worldwide stimulus that could capture them heavy profits for years in China alone. I would buy back to cover and wait for earnings and you could fetch a lot higher price on say 15' or 16's.


On Jun 04 05:14 PM connorport wrote:

> If you stay conservative with your covered call plays then you can
> do better that dividend yields right now. I did the same thing and
> added volume to my shares and lowered my overall averages. If one
> would look out to 2010 or 2011 you could probably expect a dividend
> reinstatement which would drive the stock back upwards by people
> like our gracious writer here. Play the covered calls and chase
> the value upwards when its moving up and buy back to cover when it
> drops. Either way you win on the deal.

How to Replace Sold Dividend Stocks

If you stay conservative with your covered call plays then you can do better that dividend yields right now. I did the same thing and added volume to my shares and lowered my overall averages. If one would look out to 2010 or 2011 you could probably expect a dividend reinstatement which would drive the stock back upwards by people like our gracious writer here. Play the covered calls and chase the value upwards when its moving up and buy back to cover when it drops. Either way you win on the deal.


On Jun 03 11:22 AM agedvet wrote:

> What do you all think of the sale of covered calls to supplement
> dividend income? Believing GE to be oversold, I increased my position
> despite the dividend cut and sold July 12.5's. I have also used
> the same strategy with NAT.

How to Replace Sold Dividend Stocks

I don't understand this way of thinking. Just because dividend yields are cut doesn't mean you can't retrieve income from the stock. In fact i bought heavy in GE when it hit $6 which at that point even with the cut would yield 6%. To regain some needed cash it would be smart to play the covered calls between earnings. Sell short on earnings run up and buy to cover when the stock retreats. If your'e conservative about your covered options play then any lost dividend yeilds could be earned back easily. With the up/down swings going on you can buy and sell almost weekly right now.