04-16-2014, 09:53 AM
I don't own any of them, but would consider any of the 3%+ yielding issues as potential covered call plays, if the calls are rich enough. Right now GE, AAPL, and INTC are the only somewhat similar covered calls in place.
As strictly dividend investments, the DG stocks just don't have high enough yields to attract my interest. After all, $1M invested in your selection kicks out a paltry $30,000. Who can live on that? Someone says [yeah, but in 10 years they will be kicking out $60K.] My main question of that is, [ how much will that $60k buy compared to what $30K buys today?] Secondly, how safe are those projected growth rates for the next ten years?
For me, I'll continue to take a bird in the hand, skimming the market for more solid cash flow returns. When and if the big cap DG stocks move back to historically attractive p/e's, they will once again get my attention.
As strictly dividend investments, the DG stocks just don't have high enough yields to attract my interest. After all, $1M invested in your selection kicks out a paltry $30,000. Who can live on that? Someone says [yeah, but in 10 years they will be kicking out $60K.] My main question of that is, [ how much will that $60k buy compared to what $30K buys today?] Secondly, how safe are those projected growth rates for the next ten years?
For me, I'll continue to take a bird in the hand, skimming the market for more solid cash flow returns. When and if the big cap DG stocks move back to historically attractive p/e's, they will once again get my attention.
Alex