On January 5, 2021, I bought an additional 9 shares of Intel Corporation (INTC) for our daughter's stock portfolio, paying $49.90 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 2.64% and will pay us $2.97 (before tax) every quarter. Not the biggest addition to the portfolio, but every bit counts.
INTC is paying a dividend in the following months - March, June, September, and December
For the rest of the year, we are looking to take $10.09 in dividend income (after tax) from this buy, which is about 0.38% of our $2,600 goal for 2021
We are now holding 35 shares with INTC
Our average buy price: $54.04
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 (January 5, 2021) with expiry on February 5, 2021 (monthly options), with a strike price of $55, and get for that about $0.90premium. That about 1.66% potential income return in 31 days
While we are waiting to accumulate 100 shares (65 to go) and sell covered calls for extra income, we will enjoy the dividend income
By now INTC stock takes 6.50% from our US stock portfolio.
In total INTC now contribute about $39.27 (after tax) yearly to the dividend income portfolio.
65 shares to go!