On November 9, 2020, we bought an additional 14 shares of Pfizer (PFE) paying $39.30 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 3.86% (before tax) and will pay us an additional $5.32 (before tax) every quarter. Not the biggest dividend, but every bit counts!
We are now holding 84 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.
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.
Using dollar-cost averaging our average cost per one PFE share is $38.17
If we had 100 shares of PFE today, we could sell December 11, 2020, covered call (monthly options) with a strike price of $41, to get a $1.50 premium. In case our shares would get called away on expiry we would realize $433 income in 32 days, that's a potential return of 11.34% in 32 days or about 129.27% annualized. Now, there is a bit of euphoria in the market now (November 9, Joe Biden has won US Presidency and PFE has announced 90% effective vaccine against Covid-19) and I don't think such high rates are sustainable in a long term, but time after time they happen.
By now PFE takes 11.82% from our US stock portfolio.
For the rest of the year, we are looking to take $4.52 (after tax) from this buy, which is about 0.12% from our $3,600 goal for 2020. Not the biggest addition to the portfolio, but every bit counts.
In total PFE now contributes about $108.61 (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
16 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.
