On March 5, 2021, I bought additional 8 shares of Intel Corporation (INTC) for our daughter's stock portfolio, paying $61.03 per share. Funds for this purchase were taken from my dad's inheritance fund.
With its quarterly dividend payout of $0.33 per share, this latest buy has a dividend yield of 2.16% and will pay us $2.64 (before tax) every quarter. Not the biggest addition to the portfolio, but every bit counts.
We are now holding 54 shares with INTC
Our average buy price: $55.95
I plan to increase the total share count to 100 in a reasonable time frame (say by the middle of 2021) and once we have 100 shares start selling covered calls on it to generate extra income.
Just for the illustration:
We could sell a covered call on INTC today (March 10, 2021) with expiry on April 9, 2021 (monthly options), with a strike price of $65, and get for that about $1.78 premium. That's about 19.35% potential income return in less than 30 days if our sharews would get called away. if the strike price $65 were never reached, our potential income is about 3.18% in 30 days.
While we are waiting to accumulate 100 shares (46 to go) and sell covered calls for extra income, we will enjoy the dividend income
By now INTC stock takes 7.64% from our US stock portfolio.
In total INTC now contribute about $60.58 (after tax) yearly to the dividend income portfolio.
46 shares to go!