I bought some TpA this morning at 22.37. oar at $25.00. The only preferred on AT&T 5.0% yield.
When bought at $22.37 it yields $1.25/$22.37 = 5.587%. It's the one dividend they could not reduce - for 6 years anyhow.
As I receive dividends, I'm buying fixed income that has Qualified Dividends, such that my real estate taxes and utilities are covered. Trying to secure Jan's easy to manage income if something happens to me.
If this is just a dip, we'll recover.
I'm really keeping my powder dry as I sold a lot of puts on KMI. KMI has been hit of late, and I'm pleased to see it be resilient. KMI is yielding 6.6% and has huge free cash flow and is funding there future projects internally. All but achieved their debt reduction targets. I stagger far out in time KMI puts every expiration. My next expirations are March, June, Sept, and January. I sell 14's, 15's 16's and when close to expiration I'll do a 17 hoping it gets assigned and the lower prices expire to 00.00, (which helps to pay for the assigned shares). Rinse cycle repeat. I've been doing that for 2-3 years now. They have stated the 2022 dividend will be $1.11 - a 1 cent raise for the last 3 quarters of 2022.
As a side note, that juicy dividend is restated at year end to be about half a capital distribution which reduces the cost basis, and is tax free. I'll pay taxes if and when I sell it. It's a tax deferred issue. The management owns quite a lot of the shares and they pay themselves in a tax free fashion. At first I didn't like that, but over the years I become appreciative of the money back with out a tax bill.
KMI is now my largest holding in number of shares held.
Bob |
