On July 6, 2020, we bought an additional 10 shares of Pfizer (PFE) paying $34.80 per share for our Partnership Fund. With its quarterly dividend payout of 0.38 dollars per share, this latest buy has a dividend yield of 4.36% (before tax) and will pay us an additional $3.80 (before tax) every quarter. Not the biggest dividend, but every bit counts!
There are three simple reasons we like this stock - it has a reasonably high dividend yield of more than 3%, it has increased the dividend payout for the past 9 consecutive years. Last, but not least, on PFE we can trade both put and call options. PFE has dividend payments in March, June, September, and December. We will get a small boost in these months.
Selling options is the main reason for acquiring PFE. Once we will have 100 shares of PFE we will start selling covered calls on it.
Using dollar-cost averaging our average cost per one PFE share is $39.07
By now PFE takes 5.09% from our US stock portfolio.
For the rest of the year, we are looking to take $6.46 (after tax) from this buy, which is about 0.17% from our $3,600 goal for 2020. Not the biggest addition to the portfolio, but every bit counts.
In total PFE now contributes about $43.92 (after tax) yearly to the dividend income portfolio.
Pfizer Inc.is an American multinational pharmaceutical corporation headquartered in New York City. It is one of the world's largest pharmaceutical companies. It is listed on the New York Stock Exchange, and its shares have been a component of the Dow Jones Industrial Average since 2004. Pfizer ranked No. 57 on the 2018 Fortune 500 list of the largest United States corporations by total revenue
66 shares to go for the rest of 2020. It feels awesome having such Partnership Fund Incorporated. I have not a single clue where it will grow, but I'm damn glad I have started it, maybe after a while, my partner will join the fund with her own funds, who knows.
Speaking of PFE and option selling, I have this feeling that we will take at least 20% income from options + dividends starting the next year.