Saturday, January 26, 2013

My High Yield Positions In Total

I figured since this is really the only significant position type in my portfolio currently that I would share the different stocks that I currently own with high yield from the dividend they pay based on the stock price.

They are: NLY, PBI, CLF, & VALE



CLF: Current yield is 7% based on a $0.63/share dividend and current share price of $35.71, the next ex-dividend date should be announced February 11th based on historical information. The dividend has been paid out consistently for 23 years and has been rising on a consistent basis. I was also able to sell the Jan '14 $40/call for $3.95, which was about 11% of the stock price when I acquired the stock at $33.74.

NLY: Current yield is 12.12% based on a $0.45/share dividend and a current share price of $14.85, the next ex-divided will be around the 28th of March. The dividend has been paid out consistently for 15 years and varied based on financial performance.  I was also able to sell the Jan '14 $15/call for $0.67, which was about 6% of the stock price when I acquired the stock at $14.59.

PBI: Current yield is 12.35% based on a $0.375/share dividend and a current share price of $12.15, the next ex-divided will be around the 15th of February  The dividend has been paid out consistently for 30 years and has been rising on a consistent basis. I was also able to sell the Jan '14 $12/call for $0.79, which was about 7% of the stock price when I acquired the stock at $11.79.

VALE: Actually no current position here. Closed this one out before the end of 2012.

I like these types of positions due the the nature of set them and forget them. I get paid the dividend while I wait (assuming I don't get called away). Plus I make the call premium to boost the natural yield of the stock itself. I look to aim for an annual return of 15-20% on stocks that have paid a consistent dividend overtime. On top of that I like to buy them after a significant sell off, increasing my "Margin of Safety". 

Good Luck Trading!!!

1 comment:

  1. Today CLF announced disappointing earnings and cut their dividend down to 15cts/share. I had sold the $40 Jan '14 call. With the stock at $30/share I rolled the call down to the $30 strike for an extra $3.30 credit. Now the best I can do is break even on the stock and collect the dividend. Additionally I sold one $30 put for $5/share or $500.

    So now I am essentially long 200 shares of CLF at $27.50/share.

    I will find out today whether I will be called away on my PBI position or get paid the dividend. If I am called away then I make about $474.

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