Hi ex,
Ive been doing that for four years now.
I love it.
Its the best way to build a dividend growth portfolio.
I've used it to buy KMI, T, COHU,BRKS,AMAT and now XOM.
I go after a barbell approach, one half low dividend and high growth, the other low growth and dividend aristocrat high dividend growth.
Hopefully, the high growth will appreciate enough to swap into dividend aristocrats before this bull turns bear.
When it turns bear, the revenue stream will buy more stock at a discounted price and dividend revenue will accumulate at an accelerated rate. Makes the assumption that the dividend maintains the present rate. gulp
I'm trying to devise a 50% hedging approach, but at this time, I have a hard time going short. That's a risk exposure my personality has difficulty with.
It takes a certain amount of luck to pick a month that has the underlying stock making a dip.
So now I do a little bit in the most farthest out month,except never more than 14 months.
Has worked like a charm in the this long bull.
So far I've only invested 50% of my IRA cash. The dividends keep accumulating and my IRA has a cagr of 20.25 %.
The key is to use clx when selling puts when the have maximum fear premium. I get too anxious and sell when the net purchase price hits a dividend yield of 5 to 6 % ( my target return).
I need to learn to wait for bottom spotter to dip lowest,then pull the trigger.
I try to load up the early months of the year, that gives me the premium money to play with the longest, without paying taxes in my taxable account.
A very simple plan to build a worry free retirement portfolio, but it takes time.
Never would have been able to do it - if it wasn't for cheif's genius and generous teachings.
Hail to the cheif!!
Bob |
