Sold 115 Shares of EDI at $8.00; 100 Shares NCV at $4.58 to Buy 200 Shares of CRBP at $2.49 to sell covered calls on; 13 shares of T at $29.23

Updated: 25 November, 2020 seen 34

On September 10, 2020, I sold 115 shares of Stone Harbor Emerging Mkt Total Incom FD​ (EDI)  getting paid $8.00 per share and 100 shares of Allianzgi Convertible & Income Fund (NCV) at $4.58/per share. We are still holding 115 shares of EDI and 100 shares of NCV.

Both EDI and NCV are monthly paying dividends stocks, we have been holding EDI in our dividend portfolio since September 2018, and NCV since March 2019

Both stocks combined contributed to a monthly dividend income of about $22.87 (after tax), now after this sell of, our monthly dividend income from these two stocks is halved.

It was agreed to buy 200 shares with CRBP to sell covered calls on, to generate extra income, see: Covered Call on CRBP - Potential income return 9.04% in 8 days

In fact, if our shares with CRBP will get assigned and will be called away, we are considering to buyback NCV, FGB, INTC, AWP or some other stocks (the price should be lower than we sold)

Also, we bought an additional 13 shares of AT&T (T ) paying $29.23 per share. T is a stock we keep in our daughter's stock portfolio. With its quarterly dividend of 0.52 cents per share, this latest buy has a dividend yield of 7.11% and will pay us an additional $6.76 every quarter (before tax). Awesome!

T is paying a dividend in the following months: February, May, August, and November

We like T for many reasons - it is the so-called dividend aristocrat stock, the company has raised its dividend for the last 35 years. The company is also paying out a reasonably good dividend (above 6%), last but not least T is a good stock to sell options on (puts and calls). Our goal is to collect 100 shares and start selling covered calls. 

For the rest of the year, we are looking to take $5.74 (after tax) from this buy, which is about 0.15% from our $3,600 goal for 2020

2019 in Review and Financial Goals for 2020. 

We now are holding 46 shares of T, which contribute about $80.96 (after tax) yearly to our dividend income portfolio yearly. Our average price per share: $30.09

54 shares to go once we will be able to start selling covered calls and generate extra income from T

The Bottom Line

If we had 100 shares of T today, we could sell October 9, 2020, covered call (monthly options) with a strike price of $30.5, to get $0.18 premium. In case our shares would get called away on expiry we would realize $59 income in 29 days, that's a potential return of 1.96%