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
-
Stocks that offer big dividend yields are often backed by businesses that are going through rough patches and experiencing significant downt...
-
With the calendar turning over to 2019, many of the trends causing the rise in volatility aren’t stopping. To that end, making a calculated ...
-
Many dividend stocks tumbled over the past year, since conservative investors often shift from high-yielding stocks to bonds when interest r...
-
Because we're expected to live longer than those just a generation or two removed from us, we'll need income during our retirement f...
-
For the most part, stock market investors love the technology sector. While tech stocks were hit particularly hard during the latest market ...
-
This company has become an income machine for investors over the past three decades, thanks in large part to the 132 consecutive dividends i...
-
If you want to find good deals this holiday season, forget the department stores. Instead, go to the stock market. Due to the lackluster per...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Even though GDP is growing nicely, consumer spending is red hot and unemployment is low, the stocks that are outperforming are all ones we’d...
-
In the current market environment, few things are better than a bonus check for equity investors. Of course, I’m talking about special divid...
0 comments
Post a Comment
Post a Comment