Nevsun Resources and Reservoir Minerals Combine

Written by MrStockFox. Posted in Trade Ideas

Yesterday I received some positive news.  One of my largest positions in the mining sector received a takeover offer from Nevson Resources.  You can read about the news here:

http://finance.yahoo.com/news/nevsun-resources-reservoir-minerals-combine-014000695.html

What I like about this company is that they are one of the few mining companies in the world that thas not cut their dividend.  Currently the company pays out .16 per share with an almost 5% yield.  Once my shares in Reservoir Minerals have been exchanged for Nevson I will now hold 5888 shares in the new company increasing my annual dividends by $942.08.  This will also increase the Market Value of my dividend portfolio by almost $20,000.

Once this downtrend is broken to the upside we should see a retest of the old highs.

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Healthcare REITS - Take Your Time

Written by MrStockFox. Posted in Trade Ideas

One sector that I am really wanting to add back to is the Healthcare REIT sector.  Most of the companies have been consistently raising dividends 3-8% and have yields from 4.5%-7%.  As you can see in the chart above, the MoneyFlow has continued down on the recent rise in price. A clear sign that its distribution and not accumulation.  An example of something very similar happened back in Feb, 2016. At the very least VTR should hit the lower 58 level although I expect something more like 55-57.  Also note that the moving averages are starting to point down and its just a matter of time before they give a negative cross.

Companies I am looking to add to: VTR, HCN, OHI and possibly HCP

My advice, is to be patient and wait for a further correction.  One could also wait for a postive cross of the moving averages which is probably 3-6 weeks away.

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Dividend Increases - 4-26-16

Written by MrStockFox. Posted in Dividends

International Business Machines Corporation (IBM) declares $1.40/share quarterly dividend, 7.7% increase from prior dividend of $1.30. Forward yield 3.77%. I own 53 shares and will now receive $296.80 a year in dividends.

Wells Fargo (WFC) declares $0.38/share quarterly dividend, 1.3% increase from prior dividend of $0.375. Forward yield 2.99%. I own 72 shares and will now receive $109.44 a year in dividends.

Apple (AAPL) declares $0.57/share quarterly dividend, 9.6% increase from prior dividend of $0.52. Forward yield 2.18%. I own 3 shares and will now receive $6.84 a year in dividends.

United Technologies Corp (UTX) declares $0.66/share quarterly dividend, 3.1% increase from prior dividend of $0.64. Forward yield 2.51%. I own 3 shares and will now receive $7.92 a year in dividends.

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Weekly Purchases - 4/24/16

Written by MrStockFox. Posted in Weekly Update

Over the last several weeks I have been making some major changes to my holdings under the hood.  I want to start focusing on building positions to round 100 share lots within a single account so I can write covered calls against some of my positions.  So you will see a lot of sells on my completed trades page.  I am trying to organized my positions to be larger within a single account.

One additional change I will be making going forward is to include my covered call and cash covered put premiums within my monthly reported income.  I wont add the income until the trade has been completed by either, expiring worthless, buying it back, or being exercised.  So although I have 4 option trades that I initiated below this month, I will not report the income until closer to expiration.

I Bought:

Over the last two weeks I increased my annual income by $469.33.  Here is what I purchased:

  • 6 shares of Oaktree Capital Group (OAK) - This will increase my annual dividends by $11.28
  • 23 shares of Black Stone Minerals (BSM) - This will increase my annual dividends by $24.15
  • 85 shares of WholeFoods (WFM) - This will increase my annual dividends by $45.90
  • 100 shares of Cisco Systems (CSCO) - This will increase my annual dividends by $104
  • 100 shares of Qualcom (QCOM) - This will increase my annual dividends by $212
  • 48 shares of WellsFargo (WFC) - This will increase my annual dividends by $72
  • 7 shares of Chipotle Mexican Grill (CMG)
  • 8700 shares in Ivanhoe Mines (IVPAF)

Covered Calls:

  • sold 3 NGD August 19th 2016 $5 Call - collected $121.94
  • sold 1 WFM May 27th 2016 $32 Call - collected $59.01
  • sold 1 CSCO June 17th 2016 $28 Call - collected $73.01
  • sold 11 PVG Sept 16th 2016 $8 Call - collected $638.65

Cash Covered Put:

  • sold 1 EPD Sept 16th 2016 $24 Put - collected $101.01

I Sold:

If you wish to view all my completed trades, you can find them located here.
(Sometimes the posting of my sells can be delayed by a couple days to even a couple weeks depending on when I get around to updating the spreadsheet.)

See the link above to view the latest.  

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New Purchase: Cisco Systems (CSCO)

Written by MrStockFox. Posted in Trade Ideas

Yesterday I purchased 100 shares of CSCO at $27.58 and sold 1 June 17th $28 Call option against it.

This trade can work out in several ways.

1. If the price of CSCO closes above 28 on June 17th, the 100 shares will be called away at $28.  My net gain will be $73 (the amount of premium after my expenses) plus the difference between $28 - $27.58 = .42 x 100 shares.  The total gain will be $115.  My total return will be Approx 4.2% return in just over 2 months time.  Annualized it would be around 25%.  Not a bad return!

2.  If the price of CSCO closes below 28 on June 17th, I would keep the $73 premium and keep the 100 shares, and then go on to collect the 3.75% dividend ($104).  I could then write more calls against this position at a later date.

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