UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: Income Investing: 5.5% goal possible? Date: 6/27/2011 1:00 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
If you're interested in the buy the company/sell the call strategy, which someone mentioned to you earlier in the string, here is a suggestion:

Federated Investors (FII) sells for around 23 and a half, and pays 96 cents dividend, for about a 4% plus yield.

Do your research and decide if you think its stable enough for you.

You can sell a january 2012 call option with a strike of 25 for another 95 cents or so, after commissions, and a total yield north of 8%.

One nice part is that if the stock goes up over 25/share, and the buyer of your call option exercises early to steal the dividend(s), you still might make 5.5% return with the capital gain, depending on commish and taxes.

If you ever see ODC drop back to a 5.5% yield, I'd reccommend latching on to it. Last time I looked, there are no options available for this equity.
But it makes great talk at a social gatherin...while others are talking about gold, t-bonds, ETF's and oil, you can say your heavily invested in kitty litter.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement