On November 4, 2020, I sold 80 shares of Stone Harbor Emerging (NYSE:EDF) at $6.55 to purchase 20 shares with T at $27.35 per share
We have been holding EDF stock since July 2018, in general, I still like the stock, but my investment philosophy has changed and I'm not interested anymore to hold stocks without options
From the money received I bought additional 20 shares of AT&T (T ) paying $27.35 per share. T is a stock I'm keeping in our daughter's stock portfolio. With its quarterly dividend of 0.52 cents per share, this latest buy has a dividend yield of 7.6% and will pay us an additional $10.4 every quarter (before tax). Awesome!
T is paying a dividend in the following months: February, May, August, and November
I 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 decent stock to sell options on (puts and calls). My goal is to collect 100 shares and start selling covered calls on it.
We are now holding 80 shares of T, which contribute about $141.44 (after tax) yearly to our dividend income portfolio. Our average buy price per share: $29.13
20 shares to go once we will be able to start selling covered calls and generate extra income from T. I'm looking to get there by the end of 2020
If we had 100 shares of T today, we could sell December 4, 2020, covered call (monthly options) with a strike price of $29.5, to get a $0.07 premium. In case our shares would get called away on the expiry date we would realize $44 income in 30 days, that's a potential return of 1.51% in 30 days or about 18.36% annualized