The current bear market has been a heaven for sellers of covered calls. I have mentioned earlier the pros and cons of selling covered calls. Typically I am not a big believer in cutting my profits and lowering my risk reward expectancy in exchange for the options premium. Furthermore I would hate to have a situation where a stock I like is called in and I would have to buy it back at higher levels. [more]
The big news Monday was the failed merger talks between Sun Microsystems and IBM. Sun Microsystems (JAVA) lost almost 23% of its value after the news hit the street. JAVA exploded on March 17 after rumors of a potential bid by IBM made Sun’s shares 79% more expensive. [more]
There were few dividend increases last week. The companies that raised their payments were WSO, EWST and MFA.
Despite the slow week for dividend increases, I am looking forward to a busy April, since historically some well-known dividend aristocrats tend to raise their dividends during the current month.Continue Reading... [more]
3M Company, together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Safety, Security and Protection Services; Consumer and Office; Display and Graphics; and Electro and Communications. [more]
S&P 500, which is the benchmark against which most money managers track their performance, lost 11.67% in the first quarter of 2009. The S&P Dividend Aristocrats however underperformed the benchmark by almost 2% after losing 13.84% in the first quarter. Now if we add dividends to the picture the S&P 500 loss drops to 11.01% while the loss for Dividend Aristocrats decreases to 12.90%. [more]
Back in December 2008 several US and Canadian Bloggers provided four of their best stock picks for 2009. The rules of the stock-picking contest do not allow actively trading stocks. The performance of the individual bloggers’ picks is reviewed every quarter.
You might recall that I selected four high yielding dividend stocks from different sectors which I believed have sustainable dividend payments for 2009. Check out my original post for the rationale behind my picks.
Realty Income (O) closed 2008 at $23.15. At the current price of $18.82 plus the $0.42525 in distributions collected during the first quarter the investment in the owner of commercial retail real estate properties in the US is underwater by 16.90%. This dividend achiever, which has consistently increased its distributions multiple times/year since 1994, currently spots a very attractive 9.50% yield. Check out my analysis of Realty Income.
Kinder Morgan Energy Partners (KMP) finished 2008 at $45.75. At the current price of $46.72 plus the $1.05 in distributions collected during the first quarter the investment in the owner of energy transportation and storage assets in the US is up by 4.40%. This dividend achiever, which has consistently increased its distributions several times/year since 1997, currently spots a very appealing 9.00% yield. Check out my analysis of Kinder Morgan.
Consolidated Edison (ED) ended 2008 at $38.93. At the current price of $39.61 plus the $0.59 in dividends collected during the first quarter the investment in this provider electric, gas, and steam utility services has gained 3.30%. This dividend aristocrat, which has consistently increased its distributions several times/year since 1975, currently spots an attractive 6.10% yield. Check out my analysis of Consolidated Edison.
Phillip Morris International (PM) finished the year at $43.51. At the current price of $35.58 plus the $0.54 in dividends collected during the first quarter the investment in manufacturer of cigarettes and other tobacco products in markets outside of the United States of America is underwater by 17%. This dividend stock currently spots an attractive 5.60% yield.
Overall the four dividend stocks that I picked lost 8.30% so far in the first quarter of 2009; if you add in the dividends received over the first quarter of the year the total return improves to a negative 6.50%. In comparison S&P 500 lost 11.25% in the first quarter of 2009.
Check out the performance of the other bloggers year to date returns in the table below:
1 Intelligent Speculator 4.33%
2 The Financial Blogger -0.94%
3 FourPillars -2.67%
4 Million Dollar Journey -2.96%
5 Dividend Growth Investor -8.27%
6 WildInvestor -8.90%
7 Wheredoesallmymoneygo -21.77%
8 ZachStocks -24.19%
9 My Traders Journal -27.54%
I would like to reiterate the fact that in order to generate dividend income for the long run, a more diversified portfolio consisting of at least 30 stocks should be constructed. Check out the Best Dividend Stock for the Long Run list, which is a good addition to today's post.
Full Disclosure: Long ED, KMP, O, and PM
- Best High Yield Dividend Stocks for 2009
- Best Dividends Stocks for the Long Run
- Kinder Morgan Energy Partners (KMP) Dividend Analysis
- Realty Income (O) Dividend Analisys
- Consolidated Edison (ED) Dividend Analysis [more]