I am fond value stocks with DRIP/DSP plans and little to no purchase side fees.
Rather than sell through the administrator, when these stocks approach a price target I have in mind, I will transfer the shares to my E*Trade account. This usually costs nothing because it is a transfer rather than a sale. I like having control over the sale price.
Also, if a stock has options, I then will sell covered calls at the strike corresponding to my price target. If the stock goes up, fine, then I keep the premium and get my price anyway. If the stock goes down, I either buy the option back at a low price, or let it expire and repeat when the stock price goes back up.
I've done this with a couple of stocks (RIG and XTO) and really juiced my returns. The only problem is the odd lots created. Options contracts are only for 100 shares/option contract.
My favorite new DSPs at the moment are D, EGN, MRO, SO, TX, and UCU. All have no purchase commissions or fees other than a $10 account set-up fee for MRO and SO, and all are value stocks paying decent dividends, IMHO. |
