My plan is to sell "LO" and buy high, however the other stock I bought is off 50% this year and is currently trading about 5% off the yearly low.
I don't chase yields. I'm looking for value-VGR has a competitive advantage when it comes to selling cigs because they made a deal with the States with regard to the--Tobacco Master Settlement Agreement,--so their costs are lower.
The last 10 years VGR has grown at almost 20% per year when dividends are included. Yes that's all history but that's also what investing is all about. If the stock drops I'll use that as an opportunity to add to my holdings.
Sold 2/3 of my RAI shares when it traded at another new high today and bought more VGR and another stock that effectively doubled my dividend return in IRA #1 for the cash involved.
I'll be buying more shares Friday when some of my LO shares are called away for the dividend.
"Feb 17 (Reuters) - U.S. fertilizer producer CF Industries reported lower fourth quarter profit on Tuesday.
Net earnings fell to $238.3 million or $4.82 per share from $325.8 million or $5.71 per share a year earlier."
Another good company but it too is trading near all time highs. I own small positions in several of my IRAs with no plans to buy more of sell at current prices.
"I've got some INTC being called away today at 34 in the same IRA. Next week I'll sell put options against it again that require me to buy before the next dividend. That's how I bought this position a few months ago. I always reinvest the dividends so my position grows. You can't earn 5% in a bond so I take a little risk and go for 10-20% via selling close to the $$ put and call options but only in my IRAs."
I lucked out today because not only was the market down but INTC is down over 2%. I sold put options against it in all my IRAs today. If the stock is put to me I'll again sell call options against it and collect the dividend.
In IRA #1, I doubled my position in SYA to 2.2% of the assets in the account. I've owned it for years because BRK is the largest shareholder.
The book value is around 29 and it trades at 22.64 and my new shares cost 22.59 each.
June or July is my guess but there's a 30% chance it doesn't meet approval which explains why the premium is so rich.
"Fully converted book value per common share was $33.19, an increase of 3.5% for the fourth quarter and an increase of 15.0% for the full year, each computed after taking into account common share dividends declared.
Operating income for the quarter was $60 million, or $1.34 per common share, representing a quarterly return on common equity of 4.0%. Net income was $49 million, or $1.09 per common share. The $11 million difference between the Company's operating income and net income for the quarter represented net realized and unrealized investment and foreign exchange losses."
"On 2/19/15, WMT announced a regular quarterly cash dividend of $0.49 per share, payable on 4/6/15 to shareholders, with an ex-dividend date of 3/11/15.
On 2/19/15, WMT announced a regular quarterly cash dividend of $0.49 per share, payable on 6/1/15 to shareholders, with an ex-dividend date of 5/6/15.
On 2/19/15, WMT announced a regular quarterly cash dividend of $0.49 per share, payable on 9/8/15 to shareholders, with an ex-dividend date of 8/5/15.
On 2/19/15, WMT announced a regular quarterly cash dividend of $0.49 per share, payable on 1/4/16 to shareholders, with an ex-dividend date of 12/2/15."
Why? That's just their normal dividend increase. Note-There's also a breakup fee that goes to LO if the deal is not approved.
I sold more put options on the recent correction.
I've got some INTC being called away today at 34 in the same IRA. Next week I'll sell put options against it again that require me to buy before the next dividend. That's how I bought this position a few months ago. I always reinvest the dividends so my position grows. You can't earn 5% in a bond so I take a little risk and go for 10-20% via selling close to the $$ put and call options but only in my IRAs.
This IRA will be 40% cash with 30% of that available for investment next Monday with more coming in on Friday because I may have some LO shares called away for the dividend at 65 and 67.5/share.
In other news-Berkshire's annual report comes out 2/28. Should have earned about $16 billion or $1000/share last year.
I own it in IRA #1 and have been trading it through selling options against my position.
Sold more calls today and the premium will be added to additional cash that frees up Monday with the expiration of options and used to buy another stock.
With the dividend increase today, I put the arbitrage breakup risk at about 55-57 and a strong buy under 54 if the opportunity should present itself.
Currently long the stock and short covered 67.5 March, call options.
On 2/20/2014 I posted this---
Coca-Cola's 2014 Dividend Increase
NEW YORK (AP) -- Coca-Cola is raising its quarterly dividend by 9 percent.
The next dividend is payable April 1 to shareholders of record as of March 14. Coca-Cola says raising the dividend to 30.5 cents from 28 cents reflects the confidence it has in its long-term cash flow.
The Atlanta company returned $9.8 billion to shareholders in 2013 through $5 billion in dividends and by buying back $4.8 billion in stock. It says it has returned $34.7 billion to shareholders since the start of 2010
Grandma say thank you for the raise KO but she wasn't too happy about the 2% increase in dividend announced by WMT today.
And WMT raised the dividend another 2% this year. "The Board of Directors of Wal-Mart Stores, Inc. (WMT) approved an annual cash dividend for fiscal year 2016 of $1.96 per share, an increase of two percent from the $1.92 per share paid for the last fiscal year. The fiscal year 2016 annual dividend of $1.96 per share will be paid in four quarterly installments of $0.49 per share, according to the following record and payable dates." But WMT buys back lots of stock so a modest dividend increase is ok with me.
The Boys from Brazil know what they're doing.
We're rich with cash so a new deal could be coming soon. Buffett likes to make deals before the annual meeting and the annual report which is due at the end of this month.
I have small positions in both QSR and BUD.