On January 29, 2021, I bought 3 shares of Apple stock (NASDAQ:AAPL) paying $131.79 per share.
With its quarterly dividend of 0.20 cents per share, this latest buy has a dividend yield of 0.61% and will pay us an additional $0.60 every quarter (before tax). Not the biggest income, but when buying Apple stock I'm are not looking at a dividend alone. instead, I'm looking at a potential value growth and options income from covered calls.
At the start of January, I got an inheritance of EUR 6,061 - I decided to put this money at work in the stock market, for the starter invested EUR 550 in INTC (Intel) and LI (LI auto), while the rest is used as liquidity for option trades. It's planned to deploy all funds in INTC and LI by the end of the year aka dollar-cost averaging and start selling covered calls on these stocks once 100 reached. Closed January with +$352.69 in income from options trade or 4.50% yield. From the income bought 3 AAPL shares. Looking to double inheritance fund by the end of the year. Betting huge on LI and Apple. I will keep you posted
We now hold in total 3 shares of AAPL, In total, they contribute about $2.06 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one AAPL share is $131.79
By now AAPL stock takes 1.02% from our total portfolio.
If we had 100 shares of Apple today (with a buy price of $131.79), we could sell February 5, 2021, covered call (weekly options) with a strike price of $132, to get a $3.5 premium. In case our shares would get called away on the expiry date we would realize $371 income in 7 days, that's a potential return of 2.8% since we started buying AAPL.
It's planned to buy more AAPL shares once a month until we will reach 100 shares. It looks like we might get there earliest by the end of 2022
97 shares to go!