I am awash in cash and want to make some income. My cash came from calls I wrote between 30 and 90 days ago that were taken. In other words, the call buyer paid me call income and then bought my stock from me at a tidy profit to me. I tried to buy Dividend Machines for this trade but I find more call income opportunities in what I call "almost dividend machines."
Recently I wrote about Freeport McMoran as a good income producing almost Dividend Machine and I have trade on that pending as I write.
Another consideration is Dupont. It is not quite a Dividend Machine because it has not increased the dividend every year for the required five years. It pays a dividend of 3.2% at today's price of about $50.79. An April $55 call will pay you $.43 a share. The combined yield of the dividend and the call is just above 4%. If they take the stock you gain 9.14%.
DD is not hugely compelling but when you need to earn income, sometimes you have take it in small increments.
See you next week.
Very Truly Yours,
TheMoneyMadam
