Read DiviMo's blog in RSS
June 20, 2011
Edited: June 21, 2011
Share This
Those who are afraid of high yielding dividend paying stocks were dumbfounded tuesday. NLY (Annaly Capital Mgmt), one of my favorite dividend stocks I own, declared an increase in the dividend to 0.65 quarterly, yielding 14.1%. Not only that but the stock has performed excellent during the May-Jun market correction as it's share price has actually increased since May 1. In fact it is at a 52wk high. NLY's little sister, CIM, also declared a quarterly dividend yielding 14.9%!
I do not have any of my stocks paying out a dividend this week. I expect to generate cash-in-hand income by writing naked puts and collecting the premium. The only problem Monday was that the market was up and none of my limit orders hit. It is also better to write a naked put on a down day to capture as much premium as possible. With the market up in the last three sessions and futures up in pre-market Tuesday, it does not bode well for better premiums on put options. In prior blogs, I have detailed information on MSFT , Visa, and INTC. More on that later....
My Visa (V) 18JUN 72.50 put play expired as expected. I really like the premiums Visa puts have. However, with it's minisule dividend, it is not a stock I want to own however tempting the put premium.
PM (Phillip Morris). This one is on top of my watch list in regards to writing naked puts. PM went ex-div today (Jun 21), PM's shr price should be at it's lowest for the next few days...a good opportunity to get the best premium. At the close on Tuesday, one could sell a naked put on PM for 20AUG 65's and get a premium of 1.03 or $103 per contract! PM has not been as low as 65 since the beginning of April. PM is a good stock to own if one gets assigned the strike price.
LLY (Eli Lilly) declared a dividend of .49 paid quarterly, yields 5.2%. I do not own this stock (yet).
KMP...A top rank MLP dividend paying stock. Watching this closely to add to position. KMP had a secondary offerening which depressed the stock shr price downward. It is now stabilizing around 71. Paying 6.5%. Worth a good look.
Updated Jun 21. Submitted limit orders to sell SO and sell-to-open naked PM put 20AUG 62.50 .
