Now it just needs to follow my blue trend line back up to $94.
Previous FSCSX posts:
Showing posts with label Dividend Income. Show all posts
Showing posts with label Dividend Income. Show all posts
December 22, 2012
FSCSX Dividends 5.6% in under 30 days
Got a shock today yesterday I thought some of the end of year viciousness in the stock market had had wiped out my perfect technical entry into FSCSX ... but no, just 5.63% dividend getting paid and the stock readjusting. Whew. Should read those prospectuses more closely. I've held this less than a month on this trade, so must have unwittingly bought just before the dividend record date...
Now it just needs to follow my blue trend line back up to $94.
Previous FSCSX posts:
Now it just needs to follow my blue trend line back up to $94.
Previous FSCSX posts:
August 15, 2012
Dividend Capture with TWO 7.6% in 60 trading days
Real Estate REITs are often touted as having excellent annual dividend returns. However, from my observation better gains can be had from timing the fluctuations caused by these companies paying out a large amount of their income. Search my trades on CPLP and AGNC for similar plays on high dividend stocks.
Why wait for a whole year to get a 14% return, when you can get nearly half that in only 8 weeks? This Two Harbours (TWO) trade had a trading gain of 3.8% plus a quarterly dividend of nearly 4%, bringing the total profit to 7.6% in 60 trading days.
This play worked out reasonably, although if I had waited another couple of weeks the return would have been higher as it kept climbing.
Notice in the chart below I timed the sell based on the RSI-7 (bottom chart on the graph) hitting 90. This is a sure sign of a short term pullback in the price. You can see the sharp pullback in the three days after it bounced off the 90 line.
Why wait for a whole year to get a 14% return, when you can get nearly half that in only 8 weeks? This Two Harbours (TWO) trade had a trading gain of 3.8% plus a quarterly dividend of nearly 4%, bringing the total profit to 7.6% in 60 trading days.
This play worked out reasonably, although if I had waited another couple of weeks the return would have been higher as it kept climbing.
Notice in the chart below I timed the sell based on the RSI-7 (bottom chart on the graph) hitting 90. This is a sure sign of a short term pullback in the price. You can see the sharp pullback in the three days after it bounced off the 90 line.
September 20, 2010
Sold FTR at $8.00. Cashing out in the rally
Taking profits and accumulated dividends off the table. FTR cut their dividend because of picking up accounts from Verizon, so it's dropped below my 10% cut off for dividend stocks. My initial entry was around $7.50 about a year ago.
Rule 1 of income investing. Pick stocks with dividends over 10%.
Rule 2 of income investing. Get out with any profits if the dividend is cut. The stock price will probably follow the dividend cut.
Rule 1 of income investing. Pick stocks with dividends over 10%.
Rule 2 of income investing. Get out with any profits if the dividend is cut. The stock price will probably follow the dividend cut.
August 4, 2010
CPLP Drop off due to dividend payout
Here is the dropoff due to the CPLP dividend payout that I spoke about in yesterdays post. I was seconds too late selling at the $9.20 high on Monday, but got out yesterday at $9.12.
Although I'll miss the dividend due to the record date being August 6, taking $1.12 profit per share by banking my trading profit exceeds the $0.25 per share dividend that I'm missing this quarter.
Action to take: Let the dust settle, then buy back in under $8 if possible (see the chart in yesterdays post).
Aim to make $1 per share profit within the next quarter. If you don't get the timing right, buy and hold for the dividend income. It's still a good income stock - Supertankers need to be kept running, and the world still needs oil.
August 3, 2010
Sold CPLP at $9.12. Stock will drop once the dividend is announced next week. 25% profit incl. dividends over 9 months.
Although I like CPLP a lot as a company, I'm taking some profit off the table here. I may buy back in once the dividend is paid and CPLP drops back to my buy zone between $7 and $8. This stock is quite cyclic due to the generous dividend payouts, so there is good potential to make more money trading the cycles than holding it for the dividend. Especially as my broker doesn't offer DRIP on this stock. The quarterly dividends are marked below with a D in the chart below. Notice how close the price bars come to the bollinger bands before it drops back around the time the dividend is paid. Although right now is a bullish uptrend, its trading right on the bollinger band and my prediction is that the quarterly pullback will follow in the next ten or less trading days.
The buy back point is where the candles intersect the lower bollinger band, approx 2-4 weeks after the dividend is paid.
The buy back point is where the candles intersect the lower bollinger band, approx 2-4 weeks after the dividend is paid.
May 9, 2010
AOD Alpine Total Dynamic Dividend - increase position at $8
Another opportunity created by the market correction. I'll probably double my current position in AOD if I can get in at $8.00 this week. I was much later into AOD than AGD, where my profit on 30% of the position was over 80%. Because of this I didn't take the profits as the market went up.
However, AOD actually has a higher dividend and a lower price, so pays now 12c every month as opposed to 11c each month on AGD. That doesn't sound like much, but it translates as 18% p/a in dividends alone.
If the market gets through Greece, Euro shock and BPs oil mess, and we see better jobs numbers, things may rebound, and perhaps we'll get 18% capital gains as well.
Look at the graph below showing the market corrections in February and May. I've included one of my favourite indicators - RSI (Relative Strength Indicator). When RSI hits 10 on the botton chart (red circles), thats one of my buy signals. When it hits 90 at the top of the chart, you think about sellling. It's not the final signal, I leave that to my gut. But its a more of a confirmation that the momentum is with you, and the wave is about to break.
However, AOD actually has a higher dividend and a lower price, so pays now 12c every month as opposed to 11c each month on AGD. That doesn't sound like much, but it translates as 18% p/a in dividends alone.
If the market gets through Greece, Euro shock and BPs oil mess, and we see better jobs numbers, things may rebound, and perhaps we'll get 18% capital gains as well.
Look at the graph below showing the market corrections in February and May. I've included one of my favourite indicators - RSI (Relative Strength Indicator). When RSI hits 10 on the botton chart (red circles), thats one of my buy signals. When it hits 90 at the top of the chart, you think about sellling. It's not the final signal, I leave that to my gut. But its a more of a confirmation that the momentum is with you, and the wave is about to break.
AGD Buyback opportunity after the market hammering
Wow! Am I glad I sold 30% of my favorite monthly income stock AGD (See earlier post, sold at the highest price in the last 18months.
Here is what I said I would do in the earlier post": " My AGD re-entry point is $9.25, although I'll fine tune that based on how things go. I'll be looking for similar pattern as the left of the graph for reintry - Red line above green, red candles turning to green, all candles below the green. A Doji or two to signal the market has beaten AGD down enough again.I'll probably have to wait 2-3 months for this reentry point. "
The recent market hammering because of the Goldman-Greece-Euro hysteria whacked the price down to below my buy point of $9.25. I'll wait to see if there is any permanent downtrend here, but look for a reentry at $9.00, instead of the $9.25 that I thought it would reach. I'm also only having to wait a month, rather than the 2-3 months I predicted. So I only lose out on one month of AGD dividend if I get in before the 15th. (AGD pays monthly, at the end of the month, based on your holding on the 15th).
ADG is a closed end fund, which according to the experts, often means it trades above Net Asset Value (NAV). In theory, this means it can be hit harder than other stocks by retrenchments, but it also means it may bounce back quickly.
Taking capital gains in income funds is part of our strategy at Daily Income for Life, although buying AGD was done originally for the pure income potential. At $9.25, AGD pays 14% p/a, which is not as good as it my initial purchase of AGD when it was paying 26% p/a, but its still a healthy income ETF to own.
In todays market, with even the stock exchanges uncertain whose computers screwed up to cause Thursdays panic, buy and hold is appears to be a completely outdated way to be in the market. By buying mainly dividend stocks that pay 10% p/a, we are hedging market volatility to a certain extent. Reinvesting the dividend month helps cost average out the price of the shares you own.
Here is what I said I would do in the earlier post": " My AGD re-entry point is $9.25, although I'll fine tune that based on how things go. I'll be looking for similar pattern as the left of the graph for reintry - Red line above green, red candles turning to green, all candles below the green. A Doji or two to signal the market has beaten AGD down enough again.I'll probably have to wait 2-3 months for this reentry point. "
The recent market hammering because of the Goldman-Greece-Euro hysteria whacked the price down to below my buy point of $9.25. I'll wait to see if there is any permanent downtrend here, but look for a reentry at $9.00, instead of the $9.25 that I thought it would reach. I'm also only having to wait a month, rather than the 2-3 months I predicted. So I only lose out on one month of AGD dividend if I get in before the 15th. (AGD pays monthly, at the end of the month, based on your holding on the 15th).
ADG is a closed end fund, which according to the experts, often means it trades above Net Asset Value (NAV). In theory, this means it can be hit harder than other stocks by retrenchments, but it also means it may bounce back quickly.
Taking capital gains in income funds is part of our strategy at Daily Income for Life, although buying AGD was done originally for the pure income potential. At $9.25, AGD pays 14% p/a, which is not as good as it my initial purchase of AGD when it was paying 26% p/a, but its still a healthy income ETF to own.
In todays market, with even the stock exchanges uncertain whose computers screwed up to cause Thursdays panic, buy and hold is appears to be a completely outdated way to be in the market. By buying mainly dividend stocks that pay 10% p/a, we are hedging market volatility to a certain extent. Reinvesting the dividend month helps cost average out the price of the shares you own.
March 7, 2010
Daily Income for Life Trading Strategy
To do anything successfully in life, you need a plan. With the goal of creating Daily Income for Life, a plan is really, really important!
The Daily Income for Life Plan is a simple two step process:
Step 1: Grow Capital: Agressively Trade Small Cap stocks for fast capital Gain
We'll focus on finding stocks that have 200% growth potential, or a clear 2- 4 week swing trade or short term trade opportunity identyable with freely available internet charting and technical analysis. We won't day trade as it requires too much real-time attention to the market.
Step 2: Invest for Income and Reinvest that Income: Convert the short terms gains into investments that pay regular income. This could be dividend stocks, REITS, ETFs and Royalty Trusts that pay high dividends. Scour the market for income paying investments. Real Estate Trusts, Dividend ETFs, Oil and Gas Royalty trusts, Shipping companies, utilities and railways, Mortgage and investment trusts. Between 10% and 20% p/a returns are the goal. Reinvest all the dividends to utilize the power of compounding.
Rules for Selecting Daily Income for Life investments
1. Dividends beat growth
2. Reinvesting dividends beats cashing them
3. Higher yeilds beat lower yeilds
4. Small cap beats large caps
5. International beats domestic
6. Emerging markets beats developed
7. Tax-advantaged beats taxable
8. Monthly payments beat annual payments
Rules for Trading to Accumulate Capital
1. Swing trade off clear support levels
2. Use trailing stops to lock in profits
3. Seek out volatility
3. Take small profits and reinvest them into dividend payers to multiply them over time.
4. 10% in two weeks is a great trade! The are 10% gainers happening everywhere in the market.
The Daily Income for Life Plan is a simple two step process:
Step 1: Grow Capital: Agressively Trade Small Cap stocks for fast capital Gain
We'll focus on finding stocks that have 200% growth potential, or a clear 2- 4 week swing trade or short term trade opportunity identyable with freely available internet charting and technical analysis. We won't day trade as it requires too much real-time attention to the market.
Step 2: Invest for Income and Reinvest that Income: Convert the short terms gains into investments that pay regular income. This could be dividend stocks, REITS, ETFs and Royalty Trusts that pay high dividends. Scour the market for income paying investments. Real Estate Trusts, Dividend ETFs, Oil and Gas Royalty trusts, Shipping companies, utilities and railways, Mortgage and investment trusts. Between 10% and 20% p/a returns are the goal. Reinvest all the dividends to utilize the power of compounding.
Rules for Selecting Daily Income for Life investments
1. Dividends beat growth
2. Reinvesting dividends beats cashing them
3. Higher yeilds beat lower yeilds
4. Small cap beats large caps
5. International beats domestic
6. Emerging markets beats developed
7. Tax-advantaged beats taxable
8. Monthly payments beat annual payments
Rules for Trading to Accumulate Capital
1. Swing trade off clear support levels
2. Use trailing stops to lock in profits
3. Seek out volatility
3. Take small profits and reinvest them into dividend payers to multiply them over time.
4. 10% in two weeks is a great trade! The are 10% gainers happening everywhere in the market.
March 5, 2010
Amy Calistri
Amy Calistri is an analyst with Street Authority that offers great tips and inspiration for investors wanting Daily Income for Life. Paid Services as well of course. But she also offers a great free newsletter.
Her latest stock pick which pays a monthly dividend is MAIN. Need to check it out, as it pays $0.125 a month on a stock for under $15.
Her latest stock pick which pays a monthly dividend is MAIN. Need to check it out, as it pays $0.125 a month on a stock for under $15.
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