14 October, 2021 seen 163One of my preferred investing strategies is investing in stocks from The Dogs of The Dow List. Currently (2021), these…
On April 7, 2021, we bought 4 shares of Walgreens Boots Alliance Inc (WBA) at $56.07 per share. With its quarterly dividend of 0.46 cents per share, this latest buy has a dividend yield of 3.31% and will pay us $1.84 every quarter (before tax). Awesome!
WBA is paying a dividend in the following months: March, June, September, and December.
It was agreed to re-invest and double up the previous month's dividend income to finance this purchase. As we took some $91 in dividend income in March, we doubled up this amount and bought 4 shares with WBA
We now hold 4 shares of WBA, In total, they contribute about $6.24 (after tax) yearly to our dividend income portfolio.
We are looking to increase the total share count to 100, and then start selling covered calls on KO stock.
Just for the illustration:
We could sell a covered call on WBA today (April 8, 2021) with expiry on May 7, 2021 (monthly options), with a strike price of $56, and get for that about $1.55 premium. That about 2.76% potential income return in less than 30 days.
there is no set timeframe yet when we are planning to reach 100 WBA milestone but it might be the second half of 2022
94 shares to go!