The dividend yield column is what you are accustomed to seeing on any financial website. The premium yield column shows the upfront cash flow that you could receive based on the strike prices in the first table. The final column - max gain - shows the gain that you are agreeing to cap your returns at, should the option be exercised. Note that this includes the strike price and premium, but does not include dividend payments, which could add to your return.
To make the information clear, let's run through an example. The annualized gains aren't as clear-cut with companies that have asterisks, so we'll stick to an option expiring in January of 2017. One alternative that immediately jumps out to me is Lowe's. The current share price is around $72, with a $1.12 annual dividend based on a $0.28 quarterly payout. You could own shares of this company, collect the dividend and do just fine over the coming years.
Source: Seeking Alpha
Related Articles:
- 5 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 3%
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
If it's dividends you're after, there are plenty of top companies to consider, particularly those on the Dow Jones Industrial Averag...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
0 comments
Post a Comment
Post a Comment