Tech Dividend Stocks With High Options Yields

by Robert Hauver
Who are the winners so far in 2017? We looked at sectors from a variety of angles – trailing valuations, future earnings valuations, dividend yield, and performance, to see which sectors have outperformed, and which ones hold the most promise for the future.

Not surprisingly, Tech was a clear winner in Performance- it leads all other sectors so far in 2017:

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3 Community Bank Dividend Stocks With Record Earnings

by Robert Hauver
We’ve been a longtime fan of community bank dividend stocks, and we just found 3 which reported record earnings in their most recent quarterly reports. Two of them are northeastern banks, First Bancorp, (FNLC), is based in Maine; Washington Trust Bancorp, (WASH), based in Rhode Island; and the 3rd one, West Bancorporation, (WTBA) is a midwestern bank, based in Iowa.

Profiles:
FNLC: The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individual and corporate customers in coastal and eastern Maine. It operates through 16 full-service banking offices in Lincoln, Knox, Hancock, Washington, and Penobscot counties. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is headquartered in Damariscotta, Maine.

WASH: Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company that offers various banking and financial products and services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. As of December 31, 2016, it had 10 branch offices located in southern Rhode Island; 10 branch offices located in the greater Providence area in Rhode Island; and 1 branch office located in southeastern Connecticut. The company was founded in 1800 and is headquartered in Westerly, Rhode Island.

WTBA: West Bancorporation, Inc. operates as the holding company for West Bank that provides community banking and trust services to individuals and small to medium-sized businesses in the United States. The company has eight offices in the Des Moines metropolitan area; one office in Iowa City; one office in Coralville; and one office in Rochester, Minnesota. West Bancorporation, Inc. was founded in 1893 and is based in West Des Moines, Iowa.

Valuations: These are small cap stocks, with not a whole lot of analyst coverage. WASH, the biggest company of the group, has 4 analysts covering it, who’ve given it an average price target of $58.00. WTBA has 1 analyst covering it, with a $25.00 price target. We couldn’t find any price targets for FNLC.
Both WTBA have a more attractive forward P/E valuation, and are priced at a premium to FNLC’s Price/Book and Price/Sales.

Dividends: Although their dividend yields are below those you’ll find in the Financials section of our High Dividend Stocks By Sectors Tables,  all 3 stocks have higher than market average yields, and reasonable dividend payout ratios.

FNLC has the highest dividend yield, but WTBA and WASH have the best 5-year dividend growth rates, at 17.22% and 11.06%. FNLC raised its Q2 dividend to $0.23/common share, from $.23 in Q1. It also paid a one-time special cash dividend of $.12/share in Q1, based upon record 2016 earnings.
WTBA raised its Q2 dividend to $0.18 per common share, the highest quarterly dividend they’ve ever paid.
WASH raised its Q1 ’17 dividend to $0.38/common share, from $.37 in Q4 ’16.

Options: Surprisingly, all 3 of these stocks have options, but they’re thinly traded, often with no bids at the money.

However, our Covered Calls Table and Cash Secured Puts Table each track over 25 option-selling trades daily.

Earnings: Both FNLC and WASH reported record Q2 2017 earnings, while WTBA had record Q1 earnings, and will report its Q2 earnings on Thursday, 7/27/17.
Here is FNLC’s recent quarterly & annual EPS and Revenue history. They had record earnings in 2016 also.

WASH’s Q2 ’17 Returns on average equity and average assets were strong at 13.06%, (up 10% sequentially), and 1.21%, (up 12% sequentially), respectively. Comparable amounts for the first quarter of 2017 were 11.87% and 1.08%. Wealth management assets under administration at the end of the quarter totaled $6.4B and Q2 2017 revenues amounted to $9.9M. These were record highs for Washington Trust.  Their Mortgage banking revenues totaled $2.9 million for the second quarter of 2017, up by 25% on a linked quarter basis.

WTBA reported record Q1 earnings – Q1 2017 net income was $6.1M, or $0.37/diluted common share, which was the highest net income ever recorded by the Company for the first quarter of any year. This compares to Q1 2016 net income of $5.7 million, or $0.35 per diluted common share. WTBA will report Q2 ’17 earnings on 7/27/17, before the market opens.

Financials: All 3 stocks have a healthy ROA above 1.00%, but WTBA wins the prize for ROA, ROE, and Operating Margin. WASH has by far the lowest Debt/Equity ratio, while FNLC has the highest, at 1.59, (based upon borrowed funds).

Performance: All 3 stocks are up considerably over the past year, but they’ve lagged the market year-to-date in 2017 so far, (especially FNLC). However, WASH jumped 7% today, (7/25/17), when it reported its record Q2 earnings.

All tables furnished by DoubleDividendStocks.com, unless otherwise noted.
Disclosure: Author owned no shares of any of the stocks mentioned in this article at the time of publication.
Disclaimer: This article was written for informational purposes only and is not intended as personal investment advice. Please practice due diligence before investing in any investment vehicle mentioned in this article.
Copyright 2017 RH Group Inc. All Rights Reserved

3 High Dividend Stocks Going Ex-Dividend Next Week – November 2016

by Robert Hauver
Looking for some extra income for your portfolio? As it happens, 3 of our favorite high dividend stocks in the LNG and Crude Oil shipping industries should be going ex-dividend next week, the week of 10/31/16 through 11/4/16.

We recently added a Services table to our High Dividend Stocks By Sectors Tables, which is where these 3 dividend stocks reside.
Profiles:
GasLog LNG Partners LP: GLOP currently owns a fleet of 8 LNG vessels, which it leases out on fee-based, long term contracts. GLOP was founded and went public in 2014, and is based in Monaco.

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2 Outperforming Regional Bank Dividend Stocks

by Robert Hauver
Looking for safe dividends? How about safe dividends with a little something extra, like price gains? We’ve found two regional bank dividend stocks, from different areas of the US, both of which have outperformed the S&P 500 over the past month, year, and year to date:
SYBT-PERF
SYBT is much larger outfit than PKBK, and has a longer history. However, PKBK has the added attraction of being priced below Book Value. It also has a much lower P/E, and Price/Sales valuation:
SYBT-PKBK-PB
Profiles:

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Top Performing Utility Dividend Stocks So Far In 2014

by Robert Hauver
The market has had a bumpy ride so far in 2014, with February turning in the best performance, rising over 4%, after January’s -3.6% pullback. Cap this off with a less than 1% gain for the S&P 500 in March, and you’ve got an unimpressive 1.3% gain for the first quarter:
SP-4-9-14
With this kind of up and down ride, you’d want to find some dividend stocks which offer defense, in addition to income. With the pullback in many biotech stocks, the Healthcare sector no longer leads,(although it’s still up nearly 5%), but has given way to the Utilities sector, which is up over 10% year-to-date.
Here’s a look at the chart for the Utilities ETF, XLU:
XLU-2014-04-08
We looked further into XLU’s top holdings, and came up with these top 5 utility stocks, all of which are large cap dividend paying stocks. Another common feature is that they all have somewhat lower forward P/E’s, meaning that their earnings should improve in their next fiscal year. Duke, DUK, and Southern, SO, have the lowest P/E’s, relative to their 5-year P/E ranges:
UTIL-PE
This is how they’ve performed year-to-date, and over the past month, and over the past 52 weeks. Nuclear-based Excelon, EXC, has outperformed the pack year-to-date, and over the past month, but is still up only 3.62% over the past year. Contrasting with that performance is more steady Next Era Energy, NEE, which has made over half of its 1-year 25.90% gains, by rising 13.61% in 2014:
UTIL-PERF
Dividends: With their 4%-plus dividend yields, Southern CO., SO, and DUK, are both listed in the Utilities section of our High Dividend Stocks By Sector Tables. Although their yields are lower, Dominion, D, and NEE, have the best 5-year dividend growth rates:
UTIL-DIV
Options: If you want to add more downside protection to these stocks, selling covered calls offers you more immediate income, and a lower breakeven. NEE has the most attractive call options of the group. This June $97.50 call pays $2.60, over 3 times NEE’s next quarterly dividend. (Our free Covered Calls Table has more info on this and over 30 other trades.)
UTIL-NEE-CALL
Here are the major income scenarios for this trade. The $97.50 strike price is $1.07 above NEE’s price/share, which amply rewards you if your shares get assigned prior to the ex-dividend date for the $.73 dividend:
UTIL-NEE-CALLINC
Selling cash secured put options is another way to profit from these defensive stocks. In fact, if you sell puts below the stock’s share price, you’ll get an even lower breakeven, and improve upon their defensive nature. This is another June trade, but this put has a $95.00 strike price, and a $92.05 breakeven, which is 4.5% below NEE’s price/share. You won’t receive any dividends, but, just like selling calls, you’ll be paid your option premium within 3 days of the trade, often sooner. You can find more info about this and over 30 other trades in our Cash Secured Puts Table.
UTIL-NEE-PUT
Financials: It’s a mixed bag, Dominion and Next Era have an edge over the rest of the group for some of these metrics, but they do carry more debt:
UTIL-ROE
Valuations: Excelon has the lowest valuations for these metrics:
UTIL-PB
Disclosure: Author was long shares of Southern, SO, at the time of this writing.
Disclaimer: This article was written for informational purposes only. Author not responsible for any errors, omissions, or actions taken by third parties as a result of reading this article.
Copyright DeMar Marketing 2014. All rights reserved.

The 5 Best Performing High Dividend Stocks In 2014

by Robert Hauver
We thought we’d take a different approach in this article, and look at high dividend stocks within the S&P 500 that are performing well in 2014, vs. those that are oversold and/or undervalued. Not surprisingly, 3 out of 5 of these top dividend stocks are from the Utilities and Healthcare sectors, which are the 2 top sectors year to date.
TOPDIVSTKS-PROFILE
Performance through 3/17/14: A Financial stock, AIV, is the top performer of this group so far in 2014, but, interestingly, made most of its gains in January and February, and is only up around 2% in March.
Garmin, (GRMN), a tech stock, has made all of its net gains over the past month.
The more defensive Utilities stocks, PEG and AEE, show a more balanced performance, both rising in January and February, in addition to the past trading month.
TOPDIVSTKS-PERF

Dividends: With its 4%-plus yield, we’ve added Public Enterprise Group, (PEG), to the Utilities section our High Dividend Stocks By Sector Tables. You’ll also find Lilly, (LLY), in the Healthcare section of the tables.
TOPDIVSTK-DIV

Options: 2 of these dividend paying stocks also have fairly high options yields – Garmin and Lilly. We’ve listed July Covered Call trades for both stocks below. Both stocks have ex-dividend dates for their next quarterly dividends, prior to the July call expiration, so you can effectively increase your overall yield substantially, via the combo of the dividend and option yields.
Garmin’s call option payout is nearly 5 times its dividend, and Lilly’s call option pays 4 times its dividend.
GRMN-LLY-CALLS
You can find more details on these and over 30 other trades in our free Covered Calls Table.
Both trades have call options which are enough above the stock’s share/price, to amply replace the dividend income, via price gains, if your shares get assigned prior to the ex-dividend date.
Here are the major income scenarios for the Garmin trade:
GRMN-CALLINC
Cash Secured Puts: Our Cash Secured Puts Table also lists July put trades for Garmin and Lilly, (along with over 30 other trades). These put option trades both have strike prices which are below these stocks’ current price/share, thereby achieving a lower breakeven:
TOPDIVSTK-PUT
Financials:
TOPDIVSTK-ROE
Valuations:
TOPDIV-PB

Disclosure: Author held no positions as of yet in any of the stocks mentioned in this article at the time of this writing.
Disclaimer: This article was written for informational purposes only. Author not responsible for any errors, omissions, or actions taken by third parties as a result of reading this article.

3 High Dividend Stocks Going Ex-Dividend Next Week

There are several dividend stocks going ex-dividend next week, (3/25/13 – 3/3/29/13) from the Financials section of our High Dividend Stocks By Sector Tables. The following 3 stocks are mortgage Real Estate Investment Trusts, or “mREITS”, as they are popularly known. They invest in mortgage-related securities, issued by government agencies, such as Fannie Mae and Freddie Mac, and use leverage to achieve high dividend yields.

Dividends: CMO increased its quarterly dividend to $.31, from $.30, while NLY and RSO maintained their dividend payouts this quarter. RSO maintained a $.25 quarterly dividend from late 2009 through 2011, but it dropped its quarterly payout to $.20 in 2012. Prior to the housing crisis, RSO paid as high as $.41. NLY dropped its dividend payout twice in 2012, to $.55, and then to $.50, before seemingly stabilizing at $.45 in Dec. 2012.

CMO-NLY-EXDIV

As REIT’s, they must pay out at least 90% of their income, in exchange for paying no corporate income taxes, hence their high dividend yields. Even with the decrease in dividend payouts, these yields are still quite high:

CMO-NLY-DIVYD

Current Valuations: The smallest stock by Market Cap, RSO’s P/E is closest to the low end of its 5-year P/E range, but CMO is the cheapest on a Price/Book basis:

CMO-NLY-PB

Options: Although all 3 of these stocks have options, we don’t list them in our Covered Calls Table or our Cash Secured Puts Table, due to low options yields. However, there over 30 other high yield trades in each of those free tables, which are maintained daily.

Financials: All 3 firms have similar Returns On Equity. RSO carries the least debt, and lags in Return On Investment and Interest Coverage:

CMO-NLY-ROE

Performance/Ownership: RSO has outperformed CMO and NLY in 2013, and over the past 52 weeks, partly due to its higher support from institutional and inside buyers:

CMO-NLY-PERF

Disclaimer: This article was written for informational purposes only and is not intended as investment advice.
Disclosure: The author owned CMO and NLY shares at the time of this writing.

 

A Stealthy Oversold High Dividend Stock With Growth

by Robert Hauver

We live in the Age of Information, where small investors can get an amazing amount of data on publicly traded stocks, just by clicking a mouse or touching a touchpad. But sometimes, it looks like the Age of Misinformation – Espy Mfg., (ESP), is a good case in point. Many of the finance websites that list a stock’s dividend history are overlooking something significant for Espy – a big special dividend that they’ve been paying out in December since 2008.

Consequently, many sites show Espy’s dividend yield as being below 4%, when it’s actually ranged from around 8% to well over 12% since 2008.  The table below simply uses the year ending stock prices to determine dividend yields, but you could check on the yearly price ranges to come up with more data. 2008 also had another special dividend in March, which hasn’t been repeated:

(ESP is listed in the Industrials section of our High Dividend Stocks by Sector Tables.)

Even Yahoo, which has Espy’s dividend history correct, shows a current yield of only 3.60%. Why are the sites listing it incorrectly? Because it’s a “special dividend”, and there’s no guarantee of it happening each year.

So, will they pay it again in 2012? The special dividend is based on financial results for the most recent fiscal year, which ends on June 30th, and capital requirements for the current year. They’ve supported their dividends by paying out 90% of earnings and also using some Retained Earnings. Management prefers to reward shareholders, by utilizing some retained earnings, instead of earning next to nothing on this excess cash.

Judging by Espy’s earnings and current record order backlog, prospects look good for another $1.00 dividend in 2012, particularly as ESP already ramped up its manufacturing capabilities last year, in order to meet increasing demand. ESP’s order backlog grew by over 31% for its fiscal year ending 6/31/12, to $50.8 million.

Earnings Growth: Using the 2 lowest past Order Backlog-to-Sales Conversion rates, and the lowest Net EPS %, we came up with a fiscal 2013 EPS range for Espy of $2.17 to $2.43:

These 2 estimates translate into a 2013 PEG ratio ranging from a very low .55, up to 1.34.

Technical Buy Signal: In addition to most likely being undervalued on a PEG and P/Book basis, ESP just crossed above the oversold line on its Stochastic chart, which is seen as a buy signal by technical analysts:

Options: There are no call options or put options available for ESP.

Financials/Valuations: Excepting ROE, Espy’s ratios outshine the Defense industry averages, and it also looks undervalued on a Price/Book basis.

Company Profile:Espey Mfg. & Electronics Corp, located in Saratoga Springs, NY, is a Power Electronics Design and Original Equipment Manufacturing (OEM) company with a long history of developing and delivering highly reliable products for use in military and severe environment applications.

Espey’s primary products are power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, ups systems, antennas and high power radar systems. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, Airborne power, ground-based radar, and ground mobile power.

Espey is on the eligible list of contractors on the United States Department of Defense and generally is automatically solicited by such agencies for procurement needs falling within the major classes of products produced by the company. (Source: Espy website)

Disclosure:  Author was long ESP shares at the time of this writing.

Disclaimer: This article is written for informational purposes only and isn’t intended as investment advice.

Author: Robert Hauver © 2012 Demar Marketing All Rights Reserved

3 Financial Dividend Stocks With Institutional Buying And Solid Growth

By Robert Hauver

After being the worst sector in 2011, and losing over -17%, Financial stocks are among the best stocks to buy in 2012 for price gains thus far, beating all other sectors. Even with this major turnaround, Financials are still down -2.3% over the past year:

SECR-PERF-3-15-12

Part of the recent momentum for Financials came from the Greek debt agreement being signed, and improving US economic data. Another major plus was the Fed’s mainly successful stress tests for major banks this week, but the big impetus is that this sector had much better  2011 4th earnings, even though its sales growth was flat:

SECTOR-EPS

(Data Source: Standard & Poors)

Which Financial sector dividend paying stocks are the big boys buying? It looks like some of the brokerage firms and one exchange are getting institutional support, particularly this small cap stock, Interactive Brokers, which is just -3% below its 52-week high, but only up 10.79% for the past year:

IBKR-PERF

Dividends: Although these dividend yields aren’t as high as some of the High Dividend Stocks we often write about, they all have above-average dividend yields for their industry. In addition, you can improve upon these dividend payouts dramatically by using options trading strategies, such as selling covered call options, (see further below).  *CME also had a special $3.00/share dividend that went ex-dividend in March, and increased its quarterly payouts by 22%, to $1.40, from $1.15, in 2011.

IBKR-CME-DIVS

Valuations: So, why are Institutional buyers so supportive of IBKR? Many reasons: IBKR has a very low PEG ratio, outstanding yearly and quarterly EPS and Sales growth, and its Price/Book and Price/Sales valuations are way below industry averages.  CME also has a low PEG, low Price/Book , and good EPS growth, but buyers are probably worried about potential future gov’t regulations for exchanges, stemming from the MF Global scandal.  Schwab’s PEG is also low, but like CME, its recent quarterly sales slowed vs. Q4 2010:

IBKR-CME-PEG

Financials: All of these stocks have above-avg. industry Mgt. Efficiency Ratio and Operating Margins, and carry a lot less debt than the industry average. IBKR and Schwab go head to head in the online discount brokerage segment, but IBKR has a much higher operating margin:

IBKR-ROE

Covered Calls: If you’re looking to earn more income now from these dividend stocks, but still participate in some potential price gains, selling covered call options above the stock’s current price is one way to go.  Covered Call sellers get paid an often lucrative call premium now, in return for committing to potentially have to sell the underlying stock at a given strike price by expiration time. (Each option contract corresponds to 100 shares of the underlying stock.)

If you’re more bullish on a stock, you’d sell covered call options further above its current price/share, but you’ll give up some immediate call option $ now for potential future price gains down the road. In all of the trades below, the call option premiums are up to 7 times the dividend payouts. (Annualized potential assigned yield equals the difference between the strike price and the stock’s share price, divided by the share price.)

The Annualized Total Potential Assigned Yields listed below are comprised of 3 income streams. The $ amounts for CME are:

1. Dividends: $2.80/share, ($280.00 per option contract sold). You’d collect 2 quarterly $1.40/share dividends.

2. Call option premiums: $18.80/share, ($18.80 per option contract sold). You’d get paid this $ within 3 days of selling the call options, often even the same day.

3. Potential Assigned Price Gains: $3.75/share, ($375.00 per option contract sold). This usually occurs at or near expiration time.

(You can discover additional details for this and over 30 other high options yields trades in our Covered Calls Table.)

IBKR-CALLS

Cash Secured Puts: SInce these stocks have rallied so much in 2012, you may wish you could turn back the clock and dive in at a lower price.  One way you can do this, is by selling cash secured put options at a strike price below the stock’s current price.  You’ll be paid a put premium that is often much higher than the stock’s dividends over the next 2-3 quarters, in return for committing to buy the stock at the put strike price. For example, in the 2 put trades below, these puts pay over 7 to 9 times what the dividends pay. (We listed the dividends for comparison sake only – put sellers don’t receive dividends.)

In the SCHW trade below, you’d be paid $1.10 for committing to potentially buy SCHW at $15.00 by Sept 22, 2012, if SCHW’s price goes below $15.00 at or near expiration time. But, if you end up buying SCHW at $15.00, your cost will only be $13.90, (the $15.00 strike price, less the $1.10 you were paid for selling the put option.

(You can find more details on these and over 30 other high yield Cash Secured Puts trades in our Cash Secured Puts Table.)

CME-SCHW-PUTS

Company Profiles:

Interactive Brokers (IBKR): Over the last 35 years, IBKR has grown internally to become one of the premier securities firms with over $4 billion in equity capital following payment of a special cash dividend of approximately $1 billion pre-tax.

Interactive Brokers conducts its broker/dealer and proprietary trading businesses on over 90 market destinations worldwide. In its broker dealer agency business, IB provides direct access (“on line”) trade execution and clearing services to institutional and professional traders for a wide variety of electronically traded products including stocks, options, futures, forex, bonds, CFDs and funds worldwide. In its proprietary trading business, IB engages in market making for its own account in about 6,500 different electronically traded products. Interactive Brokers Group and its affiliates execute nearly 1,000,000 trades per day.  (Interactive Brokers was named #1 online broker again in 2011 by Barron’s.)

CME Group (CME): An exchange which builds on the heritage of CME, CBOT, NYMEX and COMEX, CME Group serves the risk management needs of customers around the globe. CME provides the widest range of benchmark futures and options products available on any exchange, covering all major asset classes.

Charles Schwab (SCHW): Launched in April, 1971,  as First Commander Corporation, to conduct a conventional broker-dealer securities business and publish the Schwab investment newsletter, Schwab grew to become one of the leading discount brokerage firms, focusing on individual investors.

Disclosure:

Author holds no shares of any stocks mentioned in this article at this time.

Disclaimer: This article is written for informational purposes only and isn’t intended as investment advice.

Author: Robert Hauver © 2012 Demar Marketing All Rights Reserved

3 High Dividend Stocks With Strong Growth And High Options Yields

By Robert Hauver

This week we’re focusing on 3 high dividend paying stocks, from 3 different industries, sectors, and countries – all of which have strong growth over the past year, past quarter, and also have good growth forecasts for their next fiscal year.  This diverse group contains a large cap, mid-cap, and a small cap, all of whom are listed in our High Dividend Stocks By Sector Tables:

BGS-CTEL-PROFILES

(All Company Profiles are listed at the bottom of this article)

Growth & Valuations: All 3 firms had robust earnings growth in their most recent fiscal years, and quarters. Next fiscal year growth is also projected to be good. CTEL and NUE both have low PEG valuations, (P/E to Earnings Growth).

BGS rose 69% over the past 12 months, and is currently trading near the high end of its 5-year P/E range. CTEL is much closer to its 5-year P/E low of 6.21 than its high 5-year high P/E of 39.65.  NUE is also in the low end of its 5-year P/E range, which was very wide: 7.72 to 104.86.  All 3 of these dividend stocks currently have above-average Price/Book ratios for their industries.

BGS-CTEL-PEG

Dividends: NUE is one of the stocks in the Dividend Aristocrats group, and has increased its dividends every year for the past 27 years. CTEL pays semi-annual dividends, and had ex-dividend dates in May and December in 2011, with equal payments of $0.386/share, a 53% increase over 2010’s dividend.  BGS also increased its dividend in 2011, from $.21 to $.23.

BGS-CTEL-DIVS

Covered Calls: All 3 of these stocks have options available , which offer an opportunity to improve upon your dividend yields and improve your cash flow.

The options listed in the 2 tables below have the following expiration months:

BGS: August; CTEL: Sept.;  NUE: July.

Frequently, selling covered call options can offer you much higher, short-term payouts than just collecting dividends. The covered call strategy will give you a second, immediate income stream, since you get paid within 3 trading days when you sell options.  NUE’s call options pay over 5 times the dividend payouts in this 5-month trade listed below.  BGS’s covered call options pay over 3 times more than its dividends pay over the next 6 months.

(You can discover more details for these and over 30 other lucrative option trades in our Covered Calls Table.)

BGS-CTEL-CALLS

Cash Secured Puts: Selling cash secured put options is another options trading strategy that also has high yield, quick cash payouts, such as those listed below.  The put options for NUE outpay the quarterly dividends by over 7 to 1 in this 5-month trade.

The annualized yields below are based upon a 100% Cash Reserve, which is the amount your broker will set aside in your account when you sell put options.  This amount equals 100 shares times the Put Strike Price. We covered more of the specifics of put selling in last week’s article. Unlike call sellers, though, put sellers don’t collect dividends.

(Note: There are more details on these and over 30 other high yield Cash Secured Puts trades in our Cash Secured Puts Table.)

BGS-CTEL-PUTS

Financials: Even though Nucor’s mgt. ratios look lower than these other 2 firms’, they are actually much better than its steel industry peers. Nucor’s website also says that its “5-year 371% return to shareholders beats all other S&P 500 firms”.  CTEL’s ratios are much higher than its telecom industry peers, plus it’s debt-free, and BGS has a superior ROE and in-line ROA and ROI to its food industry peers.

BGS-CTEL-ROE

Performance & Technical Data: Although these stocks are way above their 52-week lows,  CTEL and NUE are still down vs. 1 year ago, even though they both greatly improved their earnings.

However, investors have been rewarding CTEL and NUE this year, and they’ve been among the best stocks to buy in 2012 for price gains so far:

BGS-CTEL-PERF

Company Profiles:

BGS: B&G Foods and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-stable foods across the United States, Canada and Puerto Rico. B&G Foods’ products include hot cereals, fruit spreads, canned meats and beans, spices, seasonings, marinades, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles and peppers and other specialty food products. B&G Foods competes in the retail grocery, food service, specialty store, private label, club and mass merchandiser channels of distribution. Based in Parsippany, New Jersey, B&G Foods’ products are marketed under many recognized brands, including Ac’cent, B&G, B&M, Brer Rabbit, Cream of Rice, Cream of Wheat, Don Pepino, Emeril’s, Grandma’s Molasses, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Ortega, Polaner, Red Devil, Regina, San Del, Sa-són Ac’cent, Sclafani, Trappey’s, Underwood, Vermont Maid and Wright’s. (Source: B&G Website)

CTEL: Established in 1992, City Telecom (H.K.) Limited provides integrated telecommunications services in Hong Kong via its own self-built fibre network. City Telecom’s wholly-owned subsidiary, Hong Kong Broadband Network Limited (HKBN), is the fastest growing broadband service provider in Hong Kong. HKBN offers a diversified portfolio of innovative products that service over 1,240,000 subscriptions for broadband, local telephony and IP-TV services.  CTI participated in the investment for construction of submarine cables, including Japan-US Cable to connect the US and Japan across the Pacific Ocean, as well as Asia Pacific Cable Network 2, connecting us to eight districts in Asia and allows direct connection with the major fixed network operators in China. (Source: City Telecom website)

NUE: Founded in 1940, Nucor is the largest steel producer in the US, and is the largest recycler of scrap steel in the world. Nucor produces many steel products, such as structural steel, sheet steel, plate steel, cold finished steel, and wire mesh, and also acts as a raw materials broker in the steel industry. (Source: Nucor Corp. website)

Disclosure:  Author is long BGS and short BGS call options.

Disclaimer: This article is written for informational purposes only and isn’t intended as investment advice.

Author: Robert Hauver © 2012 Demar Marketing All Rights Reserved