Wednesday, November 30, 2011

How did our 2011 dividend machines fare today?

strategyImage by Sean MacEntee via FlickrWhy should you buy a stock every week?  Because you never know when the market will do what it did today.

Why should you sell calls even when the market is down, because call buyers want to get in with little capital and they too do not know when the market will do what it did today.

Monday, November 28, 2011

2011 Dividend Machines EARNINGS PER SHARE

Verifying balance sheetImage by s_falkow via Flickr
Dividend Machines – 2011 Earnings per Share
            An income investor’s sole investment goal is income but we all know that we want our income to flow from a reliable source.  In life there are no guarantees, therefore we must depend on the financial indicators that are consistent with an investment that will deliver safe and ever increasing income.  Earnings per share are, I think, the easiest and best indicator of a company’s profitability.

            Recently I discussed dividends, dividend increases and

Wednesday, November 23, 2011

ESP - 2011 dividend machine declares special income

Dear Income Investors:

          One of our 2011 dividend machines, Espey Manufacturing & Engineering, symbol ESP, was profiled on July 11, 2011 See Original Post.  I would bet that few of you ever heard of ESP before reading this blog.   Currently trading at about $24.00 per share, ESP is a very affordable stock.

Monday, November 21, 2011

Option Income - 2011 Dividend Machines

Option Income analysis – 2011 Dividend Machines
            Income investors, covered calls, as you know, are contracts that pay you money known as a call premium. These premiums can be as little as ten cents a share or as much as several dollars a share.  So you see covered calls can provide significant investment income.  In retirement, this is very important.

 In exchange for receiving the call premium, you give the buyer the right to buy your stock at the strike price of the contract. The strike price is critical because income

Friday, November 18, 2011

2011 Dividend Machine DIVIDEND INCREASES

up arrowImage by Leo Reynolds via Flickr

Dear Income Investors:

          Finding dividend machines using only four simple criteria was the one of the goals of this blog during this first year.  One of the criteria was to include companies that have increased their dividend every year for at least the past five years.

          The theory behind including the dividend increase hurdle was that we income investors need our income to increase and we do not want to be traders in order to accomplish that goal.  Other fixed income instruments rarely provide for reliable increasing income.   Dividend machines can fulfill your need for increasing annual income.

Monday, November 14, 2011

2011 Dividend Machines INCOME

CashImage by bfishadow via Flickr

                Income investors if you are looking for a new dividend machine for this week, note that I have completed profiling 52 dividend machines for 2011.   For the remainder of calendar 2011, I will analyze how we did with those 52 companies.  I will continue to opine and comment on covered call income and interest income opportunities.  I will start profiling 2012 dividend machines again in January, 2012.

Thursday, November 10, 2011

Dividend Machine Atmos Energy - follow up

Dear Income Investor:

Atmos Energy raised its dividend again.   I love these dividend machines. See original post on Atmos Energy, symbol ATO

Very Truly Yours,


Wednesday, November 9, 2011

QCOM - a better story today

          QCOM, income investors, has been a source of a lot of income for me and yesterday I profiled a potential covered call trade.   Well today the story is even better.

2011 Dividend Machines DIVIDEND YIELD


                In this post, income investors, I will relate to you the methodology I used to select the 52 companies that met the criteria to be considered dividend machines and I will tell you what measures I will use to determine how well we did.

Tuesday, November 8, 2011

QCOM covered calls

Image representing Qualcomm as depicted in Cru...Image via CrunchBaseIncome investors, I have written about Qualcomm as a cash cow three times during the first year of this blog.  Today was another example of how to use Qualcomm in your income investing strategy.

Monday, November 7, 2011

Dividend machine for November 7, 2011 Darden Restaurants, symbol DRI

The company's former logo, used until 2009Image via Wikipedia

                Income investors, the 52nd dividend machine is Darden Restaurants, symbol DRI.  DRI provides income investors with an opportunity to diversify.  You know we tend to be heavy into industrials, telecoms, utilities, and big pharma, so it is important to add a dividend machine, our final dividend machine for (fiscal year 2011), that meets all the criteria and that adds some diversification.