26 August, 2021 seen 48On July 6, 2020, we bought an additional 10 shares of Pfizer (PFE) paying $34.80 per share for our Partnership Fund. …
On April 8, 2021, I bought additional 8 shares of Intel Corporation (INTC) for our daughter's stock portfolio, paying $66.80 per share. Funds for this purchase were taken from my dad's inheritance fund.
With its quarterly dividend payout of $0.34 per share, this latest buy has a dividend yield of 2.03% and will pay us $2.72 (before tax) every quarter. Not the biggest addition to the portfolio, but every bit counts.
We are now holding 62 shares with INTC
Our average buy price: $57.28
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 (April 14, 2021) with expiry on May 14, 2021 (monthly options), with a strike price of $65.5, and get for that about $2.2 premium. That's about 18.19% potential income return in less than 30 days if our shares would get called away. if the strike price of $65.5 were never reached, our potential income is about 3.84% in 30 days.
While we are waiting to accumulate 100 shares (39 to go) and sell covered calls for extra income, we will enjoy the dividend income
By now INTC stock takes 11.46% from our US stock portfolio.
In total INTC now contribute about $71.3 (after tax) yearly to the dividend income portfolio.
38 shares to go!