Showing posts with label Monthly Dividend. Show all posts
Showing posts with label Monthly Dividend. Show all posts
April 1, 2011
February 1, 2011
January 3, 2011
December 1, 2010
November 1, 2010
September 30, 2010
May 17, 2010
O Realty income dividend paid.
Wait, I already sold this stock at close to the 2 yr high and they are still paying me!
May 15, 2010
ADG buying back in long at $9.25 into income positon.
Executed as planned in my May 9 post, buyback of the shares I sold at $11.26, on May 14.
Here is what I said in my original post when I sold AGD at $11.26 on April 14.
" 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. "
By buying back the same number of shares as I sold, I effectively I effectively boosted the capital appreciation on 30% of my AGD position by $2 per share by sacrificing one month of income while timing the market. Thank you you Greece for this opportunity to benefit from your malaise.
So, I did exactly what I had planned, with under a month turnaround of this strategy. Now it's time to hold this stock and collect those monthly dividends again.
If I had been even more confident, I would have shorted the down trend. My technical analysis skills and intuition are not that good yet, which is why I enrolled in the Online Trading Academy Professional Trader seminar.
Of course, there is the likelyhood that ADG goes lower. You can see I bought in a downtrend that hasn't necessarily shown a reversal, with the small green candle appearing on May 15th probably being more about exhausted sellers than confirmed buyers. Ironically, the last green candle on the chart was a a terrible day in the markets and also a 1% loss for my portfolio overall. However, I wasn't looking short term with this trade, although I did want to sneak in before May 15th, which is when you have to own this stock to get paid at the end of the month.
The real reason I'm in AGD is because it plays 11c per share every month - about 14 % per annumn. I'm willing to take some downside risk because that 14% dividend covers some of that risk. Also, because I'm cost averaging the reinvested income every month, if it drops down a bit, I'm reinvesting at a lower cost. Which in turn increases the payback if the stock rises to the level where technical analysis tells me that the capital gains are a safer bet than waiting on dividend checks.
Happy investing
Here is what I said in my original post when I sold AGD at $11.26 on April 14.
" 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. "
So, I did exactly what I had planned, with under a month turnaround of this strategy. Now it's time to hold this stock and collect those monthly dividends again.
If I had been even more confident, I would have shorted the down trend. My technical analysis skills and intuition are not that good yet, which is why I enrolled in the Online Trading Academy Professional Trader seminar.
Of course, there is the likelyhood that ADG goes lower. You can see I bought in a downtrend that hasn't necessarily shown a reversal, with the small green candle appearing on May 15th probably being more about exhausted sellers than confirmed buyers. Ironically, the last green candle on the chart was a a terrible day in the markets and also a 1% loss for my portfolio overall. However, I wasn't looking short term with this trade, although I did want to sneak in before May 15th, which is when you have to own this stock to get paid at the end of the month.
The real reason I'm in AGD is because it plays 11c per share every month - about 14 % per annumn. I'm willing to take some downside risk because that 14% dividend covers some of that risk. Also, because I'm cost averaging the reinvested income every month, if it drops down a bit, I'm reinvesting at a lower cost. Which in turn increases the payback if the stock rises to the level where technical analysis tells me that the capital gains are a safer bet than waiting on dividend checks.
Happy investing
Executed increase in AOD Long at $8 for monthly dividend income
Executed increase in my AOD income portfolio at $8 on Friday, as posted last week after the Thursday meltdown. While the state of the market makes me extremely nervous right now, this is strictly an income play, as AOD is currently paying 18% p/a. As AOD pays it's monthly dividend based on your holdings on the 15th, timing was quite important. Hopefully I just sneaked in to paid at the end of this month on the new position.
For these income stocks, especially if they pay monthly, its a game between taking capital gains if the gains exceed your income reinvestment potential (like I did with AGD, where I wanted to take 80% profits from some of my initial investment off the table), and the long term ability of dividend reinvestment to outperform the market over the longer term.
If your technical analysis skills are good, you should be able to find a balance between taking short term swing or position trading profits, and long term dividend gains to increase the total p/a return into the 20 - 30% p/a range.
I easily did that with AGD, but had the advantage of getting in near the bottom of the 2009 market collapse.
Whether I can still do it with AOD will largely depend on what the market does next.
For these income stocks, especially if they pay monthly, its a game between taking capital gains if the gains exceed your income reinvestment potential (like I did with AGD, where I wanted to take 80% profits from some of my initial investment off the table), and the long term ability of dividend reinvestment to outperform the market over the longer term.
If your technical analysis skills are good, you should be able to find a balance between taking short term swing or position trading profits, and long term dividend gains to increase the total p/a return into the 20 - 30% p/a range.
I easily did that with AGD, but had the advantage of getting in near the bottom of the 2009 market collapse.
Whether I can still do it with AOD will largely depend on what the market does next.
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.
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