Daily dividend news for investors in dividend stocks

Using Stock Options To Pay Yourself 2% Monthly Dividends

Published Mon, 30 Jan 2017 08:37:02 -0500 on Seeking Alpha

Sometimes we forget the basics.
In our video series, there's a lesson called "The Secret to Consistent 20-40% Annual Returns on Stocks" and I hope you've seen it. Although the low implied volatility of the market has made it a rough year for option selling, we were still able to scratch out just over 40% profits in four months in our paired Long-Term and Short-Term Portfolios. Our other virtual portfolios are also performing very well with the Options Opportunity Portfolio up over 100% in 2016 and, surprisingly, our very conservative Butterfly Portfolio is up over 60% due to some not very conservative bullish adjustments we made in the February dip. On the whole, though, we accomplished all this by following the BASIC strategies we teach at Philstockworld, not by gambling!
I've written this article before, the first draft was on May 14th of 2016 so let's start by showing you how our picks from that article did so MAYBE you will take the rest of what we have to teach you seriously - time is money and, at PSW - we don't waste either!
Trade Idea #1 was Barrick Gold (NYSE: ABX) using the following combination:
Buy 1,000 shares of ABX for $18.40 ($18,400) Sell 10 June $18 calls for $1.40 ($1,400) In this case, ABX was at $20.11 on June 17th and the stock was called away for $18 ($18,000) so the profit was $1 ($1,000, as you keep the short call money too). While making $1,000 an outlay of $17,000 (5.8%) is not that sexy, keep in mind this was 34... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
FORD MOTOR 10.61   5.6 1.90 0.60 5.51
PFIZER 36.31   10.3 3.51 1.36 3.67
COCA-COLA 43.22   160.1 0.27 1.56 3.36
BARRICK GOLD 11.52   9.4 1.23 0.12 0.98


Older articles featuring Ford Motor (F):
Ford Motor: 5.3%-Yield And Rebound Potential
Here's Your 50 Top-Yield Consumer Cyclical Dividend Stocks For March (And Net Gains, Too)
Meet 18 S&P Wall-Star 'Safer' Dividend Picks In March
S&P 500 'Safer' Dividend Gains Led By General Motors, Qualcom, & Invesco For March
Top 50 S&P 500 By Yield, Gains And Upside For March
Ford: How Safe Is The Dividend?
Why You Should Buy 5.8%-Yielding Ford Motor
Ford Effective Yield Tops 7.00%
5%+ Dividend Yield Portfolio: Bought The Dip (Feb. 2018 Review)
My Dividend Growth Portfolio In 2018