One thing about buying stocks is that one does not have to rely on dividend paying stocks to make dividend like income in the portfolio. The investor can easily make an extra 5%, 10% or more over a one year time period. There are some large companies out there that seem to never pay dividends. Loyal shareholders tend to stay with these stocks while the companies sit on billions of dollars in cash. The truth is that some companies may never pay dividends. They tend to use profits to fund acquisitions, aggressive research programs, or as rainy day reserves. There are investors who don't want to sell their stock but would like to raise some cash. There are hundreds of shares of stock, maybe thousands, that sit in investors' portfolios and those shares could be putting stacks of cash in their owners' pockets.
It is now easier than ever to squeeze dividend-like income from non-dividend paying stocks. What happens is that most stocks offer publicly traded options. One can make these transactions with the broker that is similar to buying and selling stocks. A call option gives another investor the right to buy shares at a price that can be set anytime before a certain date. That way a premium can be collected by selling the call and the investor then gets the premium, in cash, on the day the option is sold.
Options trading is another stategy.
The very heavily-traded stocks include Microsoft (MSFT), Google (GOOG), and Ebay (EBAY). Option premiums fluctuate but the examples below illustrate returns whatever one might expect over the period shown for every thousand shares of the stock. It is easy to sell options each month, up to 12 times a year, after they expire. It's not unusual to see return rates of 12% over sixty days, which works out to an astounding 72% annual return just on stocks that one has in the portfolio. Of course brokerage commissions and taxes will affect actual returns. Along with a complete suite of educational materials and premium toll-free customer support, PowerOptions provides the essential data needed to invest with stock options. Their patented SmartSearchXL® technology is not available anywhere else. It's the best way to Find, Compare, Analyze, and Make Money On Stock Option Trading.
No comments:
Post a Comment