Latest Stock Buy: 13 shares of Pfizer (NYSE:PFE) at $36.24 per share

Updated: 23 December, 2020 seen 45

On October 7, 2020, we bought an additional 14 shares of Pfizer (PFE) paying $36.24 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 4.19% (before tax) and will pay us an additional $4.94 (before tax) every quarter. Not the biggest dividend, but every bit counts! 

We are now holding 70 shares of PFE in our Partnership Fund portfolio

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. P

PFE is paying dividends 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.

Covered Call Trade Idea with Weekly Options - Generate $45/week from this Dow Jones list Dividend Stock

Using dollar-cost averaging our average cost per one PFE share is $37.94

30 shares to go once we will be able to start selling covered calls and generate extra income from PFE. We are looking to get there by the end of 2020

If we had 100 shares of PFE today, we could sell November 6, 2020, covered call (monthly options) with a strike price of $38, to get a $0.74 premium. In case our shares would get called away on expiry we would realize $80 income in 30 days, that's a potential return of 2.12% in 30 days or about 25.77% annualized 

By now PFE takes 10.48% from our US stock portfolio.

For the rest of the year, we are looking to take $4.19 (after tax) from this buy, which is about 0.11% from our $3,600 goal for 2020. Not the biggest addition to the portfolio, but every bit counts.

In total PFE now contributes about $90.3 (after tax) yearly to the dividend income portfolio.

2019 in Review and Financial Goals for 2020

About Pfizer

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

30 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.