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Strategies & Market Trends : Dividend investing for retirement

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Thehammer
To: Ditchdigger who wrote (30312)1/5/2019 11:53:22 AM
From: robert b furman1 Recommendation  Read Replies (4) of 34328
 
HI Ditch,

14 months ago I sold some T 30.00 puts.

If assigned to me on the 18th I'll be getting some sweet 6.74% dividends.

After the calamitous December of inflated put premiums - those who sold the puts not wanting to get assigned the stock should be hiding under their desks.

It always amazes me how they strike fear into the inflated premiums and then just when they have to cough up some cheap stock for a sweet dividend yield ,the stock miraculously recovers.

Selling puts out over 12 months is a capital gain tax rate much like dividends.

The biggest difference is once you pay for the stock you get a more reliable revenue stream, year after year.

There are just a few stocks I have that kind of confidence in.

KMI and XOM are my others - I've sold that far out.

I'm a full position in KMI now and will be a bit over position if my January 18's get assigned. If that happens ,I'll trim my highest cost shares and get ready for that hoped for $1.25 2020 dividend.

Xom at $3.28 and T at $2.04 with Kmi at $1.25 gives me a core of solid companies with real products and real demand = even if the rest of the world slows down.

I continually get amazed at all of the doomsayers scaring the US equity owners into realizing that the "America First" trade position, may in fact be getting understood to a event to the excess capacity so optimistically built by the Chinese.

Their plans for world domination of all manufacturing may yet result in an overcapacity, that weighs on one's neck when swimming in the world's global trade waters.

It is not surprising to me that the US is not losing its economic recovery. The lowered corporate tax rates, have had a rejuvenating influence on where corporations want to domicile their new plants.

This transition will go on for years and it will be very beneficial to to our domestic equity markets.

All IN MY OPINION.

Bob
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