On May 27, 2020, we bought 10 shares of AT&T (T ) at $ 31.875 per share for our daughter's stock portfolio. With its quarterly dividend of 0.52 cents per share, this latest buy has a dividend yield of 6.52% and will pay us $5.2 every quarter (before tax). Awesome!
T is paying a dividend in the following months: February, May, August and November
We like T for many reasons - it is the so-called dividend aristocrat, the company has raised its dividend for the last 35 years. The company is also paying out a reasonably good dividend (above 6%), last but not least T is a good stock to sell options (puts and calls). Our goal is to collect 100 shares and start selling covered calls.
Top 63 S&P 500 Dividend Aristocrats 2020
T is a stock we actually had in our portfolio since September 2019, but unfortunately, because of the Margin Call, we had to let it go to cover ours loses, earlier in March. Now, this is something we want to avoid in the future
We made this buy as a penalty for a bad trade, let me explain - a couple of days ago I placed the so-called Poor Man's covered call with a dutch stock of Aegon. Our strikes got challenged and I just didn't see a point of adjusting this trade and closed with a small loss. To avoid such trades in the future, I have built a penalty trades fund, and this latest buy with T, is part of it. The other stock name we use to accumulate shares after bad trades is Bank of America (BAC)
Closed AGN Poor Man's Covered Call with a - EUR 35.16 Loss
For the rest of the year, we are looking to take $8.84 (after tax) from this buy, which is about 0.245% from our $3,600 goal for 2020
2019 in Review and Financial Goals for 2020.
We now hold 10 shares of T, In total ir contribute about $17.68 (after tax) yearly to our dividend income portfolio.
90 shares to go once we will be able to start selling covered calls and generate extra income. If we had 100 shares today, we could sell June 26, 2020, covered call (monthly options) with a strike price of $32, to get $0.89 premium.
