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.

          You might think that in a down market no one would want to purchase the right to buy your stock for more than you paid for it.  You would be wrong.

          Today you could buy Qualcomm, symbol QCOM for your income investing portfolio at $55.41.   The January 62.50 call pays you $.75 per share (based on 100 shares you receive $75.)   In many other posts I have clearly identified Qualcomm as an almost dividend machine and defended why I own this stock for income.   If QCOM has a great quarter ending in December ... the Christmas season ... the call buyer just might take your QCOM and you get not the 11 percent gain from yesterday but a 14 percent gain.

           You need to develop a portfolio of almost dividend machines that provide opportunities to beat the 3% yield minimum of dividend machines and have the chance to return 10+ percent.  Read this blog often and during the remainder of this year as we analyze how did on dividend machines, I will concentrate on developing a portfolio of almost dividend machines with even more income potential.

Very Truly Yours,

related posts:  January, 2011  July, 2011