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


To: robert b furman who wrote (30313)1/5/2019 12:21:12 PM
From: Ditchdigger  Read Replies (2) | Respond to of 34328
 
So how does one invest in sustainability? I recently spent the holiday with among others, my niece-21yo, will be going for her masters at Drexel after graduating in May and my nephew-26yo, men's fashion designer for a major us retailer. I heard the word sustainability come up a lot during my visit and probing(g).
Actually got gifted sweater made from soda bottles, go figure.



To: robert b furman who wrote (30313)1/5/2019 3:53:01 PM
From: JimisJim2 Recommendations

Recommended By
B.O. Plenty
rnsmth

  Read Replies (1) | Respond to of 34328
 
As of market close yesterday, T was officially yielding 6.9%... if I were just now starting out with DGI and in my 20s, I'd be happy just owning T and O to start with... pretty reliable divvies and divvy raises from both... not likely either will go to 0 and out of biz like, say, Sears...



To: robert b furman who wrote (30313)1/5/2019 3:59:46 PM
From: JimisJim  Respond to of 34328
 
Bob, I've given up trying to figure the "trend lines" in general wrt China...

For several years, they were building one new, complete coal-fired power plant a week! It led to traditional opponents of coal-fired generation to realize that was a perfect opportunity to tweak the coal-fired designs to make them more efficient and cleaner... I read articles from non-conservative publications like The Atlantic Monthly -- they dedicated an entire edition devoted to it... bottom line was the recommendation that we send all of our engineers in power generation over to China and use their build out of power plants to learn what does and doesn't work, or if using coal was even a good idea at all... again, the author's conclusion (lead writer was James Fallows, not known for being a conservative) was that the world needs to keep coal in the equation worldwide, but there's still a lot of innovation and engineering needed to make that prospect palatable to all sides of the energy spectrum.



To: robert b furman who wrote (30313)1/13/2019 11:16:53 PM
From: spindr00  Read Replies (2) | Respond to of 34328
 
I don't get the fascination with dividends. Becoming entitled to one on the ex-div date doesn't provide Total Return. If it's a non sheltered account, you're paying taxes for the privilege of receiving some of your own money back. AT&T is a good example of that. If bought it one year ago, you received $2.01 per share in dividends while share price dropped $5.61 for a net loss of $3.60 per share (or $3.66 per share if you reinvested the dividends). And that's before taxation.

OTOH, the premium from selling puts (or the equivalent Buy/Write strategy) provides a premium credit to your account which is yours to keep, regardless of what share price does. It also lowers your cash at risk basis and will never do worse than owning the underlying.

FWIW, if you're willing to forego the put/covered call premium and you would like to goose the return on a long stock position, consider a Repair Strategy... even though it's technically not a repair if you're not underwater. Sell a 1x2 ratio spread against each 100 long shares. All short calls are covered.

For example, with XOM closing at $71.72 , a March 22nd XOM 1x2 $70/$72.50 ratio would net you $75.42 if XOM is over $72.50 at expiration. That's $3.70 of gain on a 78 cent up move. And that's not even counting the 82 cent dividend in early February which you may or may not get (early assignment if deep ITM?).