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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Debt Free who wrote (1103)2/9/2008 5:12:38 PM
From: Steve Felix  Read Replies (1) | Respond to of 34328
 
<do you ever sell calls or buy any puts to hedge your position?>

Never have, but I'm willing to take a lesson. I'm still perturbed with myself for letting my CHZ go to sale and having to claim the gain. Should have taken stock. Covered calls could do the same.

Investing for dividends brings yield on investment into the picture. Paying taxes on, then reinvesting the money and getting less in dividends is not the idea.

My current yield on investment vs. if you bought now:
( and this is after financials have been hammered )

ABCB 5.1% now 3.6%
CNB 6.2% now 5.4%
BKSC 6.4% now 4.6%
NBTB 5.3% now 3.6%

These are some of my longer holdings. Dividends take time to build.

I don't see much difference between puts and calls and my trade. Either way you are betting on the direction the stock or market will take. Personally I think it is much easier to predict one stock than the whole market. That is a coin toss:

morgan.rutgers.edu