Steady income strategy

[dmk112]

I think I see a problem when the stock gets called away. You may have to buy back at a price that will eat into your profits. This will at least lower the average return. Another possible problem might be loss of capital when dividend stocks get out of favor. This could also influence the possibilities of writing reasonably well earning covered calls.

Just some remarks of someone who is not an options expert at all.

Regards,

Karel

Karel.. yea, this is for stocks that you think will slightly go up or stay steady.... you don't want to do it for growth stocks that may ripp up. But blue chips that have been in the same place for years... e.g. VZ, JNJ, etc.... it's a viable strategy.

[riverbabe]

Karel.. yea, this is for stocks that you think will slightly go up or stay steady.... you don't want to do it for growth stocks that may ripp up. But blue chips that have been in the same place for years... e.g. VZ, JNJ, etc.... it's a viable strategy.

JNJ might not be the place now! Big recall! Possible criminal charges! Ouch

[dmk112]

JNJ might not be the place now! Big recall! Possible criminal charges! Ouch

JNJ will be ok... this is nothing than a blip in their business. The consumer business is less than a 1/3 of their business.

[wooish]

Just came across this nice article about finding Low Beta, High quality dividend stocks http://dividendsvalue.com/6520/11-lo...vidend-stocks/

[Peter Hansen]

A no fuss no muss solution to $$$$$

The buy and hold investor can do no better than with these 2 stocks . One Tobacco , MO and the Other a REIT O .

Why do I say this? Look at the links below and see the sweet monthly dividends form O and the quarterly dividends from MO, and note how 10K increases for both of them. I have both in my daughter's Roth Ira Account!


For O http://quicktake.morningstar.com/Sto....aspx?symbol=O

For MO http://quicktake.morningstar.com/Sto...aspx?symbol=MO

Perhaps others can add similar stocks with comparable performance!