Monday, March 27, 2017

Darden, activist investor worked at DRI

Good news for this 2011, 2012 and 2013 Dividend Machine.  See the links below regarding Dividend Machines.

DRI snoozed for a while and now it is back.


Good job by the activist investors.  Now they are buying another chain and the market didn't like it today.  With a 2.92% dividend yield, DRI is enticing but we need to see significant dividend increases before we jump in again.

M* MoneyMadam

Disclosure No position

Sunday, March 26, 2017


I take INTC every time!


Disclosure:  Long INTC

Sunday, March 19, 2017

Can you buy Technology with dividend income?

They say never begin a post with a question.  Who am I to listen to that kind of advice because most often I start my stock search with a question and today's question is what tech stock with growth potential can also pay me a dividend while I wait?

I am not going to write about Intel, INTC, or Microsoft, MSFT or even Qualcomm, QCOM as I have covered them as dividend machines.  This week I have been looking at other names and I found 2 worth writing about.

I looked at the holdings in the ETF managed by SPR that concentrates on technology that ETF trades under the XLK symbol.  Two stocks are of interest.

Skyworks Solution (SWKS)

Skyworks states they empower the wireless networking revolution.  I must tell you a personal story here about wireless networking.  I use AT&T Uverse in more than one location.  As I move between these locations I can change my television service from the 450 channels to the basic channels to save money but I can never get the internet cost to less than $40 a month in each location.

Verizon suggested I try their Ellipsis Jetpack.  The device is cheap and the monthly fee is half of what Uverse charges and I only need one device.  It even works in the car.  Believe me it is fast.  But, there is always a but, if I cancel uverse and use only the Verizon Jetpack, my computer and printer will not talk to each other.  I spent hours with tech support at Microsoft and Verizon and they assured me that it was not to be.

The moral of this personal story is wireless networking still needs a revolution and perhaps SWKS will pay me as we go.

SWKS Fundamentals:

In the table below you can see the fundamentals I use to evaluate a dividend stock applied to SWKS.  Readers know that I require EPS (earnings per share) exceed dividend paid out.  I like to see dividend growth over recent years exceed expected inflation, and I must see a good balance sheet.  Revenue growth is good to see and covered call potential is definitely a positive.  However, I do not fool myself into thinking that just covered call potential will make up for a plunge in the stock price should some unexpected catalyst negatively affect my stock.

Xilinx (XLNX) Fundamentals:

Xilinx symbol XLNX is the second stock that stood out. The fundamentals I used to evaluate XLNX are presented in the table below.

Compare SWKS and XLNX

In comparing the two stocks, it is not a perfect match.  Xilinx is more involved in the chips end of technology rather than wireless networking.  Xilinx delivers a better dividend but less revenue growth.  Both have good covered call potential and you can see a dollar invested buys about the same amount of revenue, earnings and dividend.

I will probably buy both of these stocks and see how it works out.  I get paid to wait.  My usual technique is to buy enough that I can sell calls on part of my position.  Xilinx works better since it trades at half of SWKS'  price.  You never want to put too much money into any one stock or any one sector.

These are two stocks to consider if you are a dividend investor interested in technology that goes beyond the usual Intel's and Microsoft's.  Why look beyond Intel and Microsoft because Intel has slow growth and Microsoft is expensive. 

M* MoneyMadam

Monday, March 13, 2017

On vacation

I will return the week of March 20.


Tuesday, March 7, 2017

Target (TGT) Call Option

My call option target criteria are (1) strike price 8% above cost basis (2) premium equal to or greater than 1% of strike price (3) expiration date after the next ex-dividend date and (4) a total return of no less than 10% if the call is exercised and the stock assigned.

Target symbol TGT has been talked about by dividend investors due to the juicy yield of  4.18%.  Value investors see an opportunity because of recent price pressure.  TGT just breached its 52 week low.

Here is a call option of interest today.

My major concern is Target's debt to equity ratio of 1.159 which is a bit above my level of comfort.  Walmart's (WMT) D/E is only .5061

M* MoneyMadam

Disclosure:  Long WMT

Monday, March 6, 2017

Waste Management modest Dividend Increase

Modest dividend increase for this 2011 and 2012 Dividend Machine.  Plugging along.


Disclosure:  Long WM