Grandma thanks you for the dividend increase.--"The parent of Camel and Pall Mall cigarette maker R.J. Reynolds said Thursday that it earned $279 million in the three months that ended Dec. 31. That's up from $148 million a year ago when it booked pension charges and other costs ahead of last year's closing of its $25-billion takeover of Newport seller Lorillard Inc.
Results adjusted for one-time items totaled 48 cents per share in the most recent quarter, and revenue jumped 43 percent to $3.05 billion, spurred in part by the Lorillard deal.
FactSet says analysts expected, on average, earnings of 50 cents per share on $3.05 billion in revenue from the Winston Salem, North Carolina-based company.
Revenue from the company's R.J. Reynolds segment jumped 51 percent to $2.52 billion, helped by the addition of the Newport brand. American Snuff sales climbed about 12 percent to $226 million.
Tobacco companies have been focusing on cigarette alternatives such as snuff, chewing tobacco and electronic cigarettes as tax hikes, smoking bans, health concerns and social stigma make the cigarette business tougher.
Reynolds American expects 2016 adjusted earnings to range between $2.25 and $2.35 per share. Analysts are looking for $2.33 per share.
The company also said Thursday that its board approved a nearly 17 percent increase in its quarterly cash dividend to 42 cents per share from 36 cents."
BANK AMER CORP 7.25%CNV PFD L---1175/share
It's a 1.8% holding but I may send new $$$ to account to take advantage of lower stock prices.
Preferred stocks now make up over 5% of her holdings with yields over 6.5%
The AR could deal with share buybacks and I'd even up the chances of a possible dividend to 10% in the next year and 50% within 5 years. Any discussion of these topics could raise the price of BRK by 10%. The call buyer has a good chance but since it's in an IRA I'll take the 1.2% option premium.
BRKB 09/16/2016 150.00 C - BERKSHIRE HATHAWAY 9/16/2016 $150.00 Call
Sold the above calls in new IRA a few days ago for 1.55/share. Currently it must go up 18% before it's sold.
Let's see how it does.
Currently BRK makes up 77% of this account.
With the stock up 5% she sold these call options-AIG 08/19/2016 62.50 C - AMERICAN INTL GROUP 8/19/2016 $62.50 Call , which pays for another month of electricity.
She's now short both May and Aug call options.
Thanks again AIG.
"Book value, the measure of assets minus liabilities fell to $75.10 a share, from $79.40 three months earlier."
They also raised the dividend 13% and added $5billion to share buyback. Last year they bought 13% of their shares back and should do another 10% this year.
Grandma thanks you.
I'll look into that but I like to KISS.
It's only $40 to $50 in dividends per year. In a few years I could start a Roth IRA for her. I'll put her to work doing yard work and picking berries. I still have the first dollar I ever earned at the age of 5.
No. It's a buy and never sell account.
I have a 22 year old nephew I've been cutting firewood with over the last month and he has an account worth $40,000 plus, which is invested in BRK, DIS, KO,WFC, NKE, AXP and a few others. It was started before BRK issued "B" shares so his $$ was pooled with other nieces and nephews.
Never sell unless you need it for school or buy a home is my motto.
In IRA #2, bought more of BAC-pfd, raising my preferred holdings to 9% of the assets in this account.
Also raised CD holdings by 12% to 3.5% of the assets in account. I plan to double this by year end.
I bought 10 shares for my niece's account today at 76.
Also bough her more AIG at 53.
We just sent in another $1500 for my niece's birthday. We bought her more AIG and initiated a position in AIG at 76.
Her new portfolio--BRK-36%, AIG--25%, PSX--25%, KO--4%, IBM--3.7%, PM--2.8% and the balance in a Schwab ETF.
She had to pay 2 $7 commissions.
Current value-- $3,595.41
She's now age 3.
convert it to firewood. I'm off to cut another cord today at a cost of about $10 in fuel. When the market goes down I cut wood. So far this year I've cut around 20 cord, half of which is mine.
In other news I sold more call options against PM in an IRA yesterday.
She sold more call options-CF INDUSTRIES HLDG 5/20/2016 $35.00 Call, which brings the option adjusted cost down to about 31.1/share. She was paid 1.11 on half her shares.
When Feb options expire, she'll sell more.
She paid--$51.32/share increasing her position by 25% to 5.64% of her assets.
AIG trades at a 35% discount to book value. It's now her 3rd largest position behind BRK and PM.
Grandma buys more CF at 27.27/share which lowers her average cost per share to 31.6/share.
It makes up 2.46% of her assets.
And now the stock is almost even though pre market it was down over 3.
Also the DNKN earnings are now being considered a big miss. Buy it under 33.33 and buy a dozen donuts.
Down under 87 on bad earnings.
Thank you call options!
In other news-DNKN reported good quarter and raised dividend 13%--coffee, donuts and cigs go together.