Dividend investing for retirement Message Board

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Strategies & Market Trends : Dividend investing for retirement

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To: Triffin who wrote (3723)	2/9/2010 2:58:43 PM
From: deeno	1 Recommendation Read Replies (1) of 34328

"I'm willing to buy EXC @ 44 for it's $2.10 dividend The $3.30 I collect now in PUT premium is more than the annual dividend and, if the stock closes below $40.00 in Jan 2011 I'll own EXC at $36.70 then, rather than for $44.00 now .." not actually complete if your going to include the premium in the cost basis you would need to include the dividend on the stock for a year if you bought now giving you 41.90 net cost. You also lose time value of money you set aside to buy stock IF you have to excercise. also slight tax consequenses currently of dividend @ cap gains and premium at ordinary income. Still OK just wasnt complete.

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