3 September, 2021 seen 28,226Selling covered calls I probably love even more than selling naked puts, unfortunately, there are not many good stocks…
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 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
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