Wednesday, February 29, 2012

LOCKHEED MARTIN Conundrum

It doesn't happen too often, but yesterday, the buyer of one of my covered calls, Lockheed Martin (LMT) executed the call and my stock was assigned well before the call expiration.

LMT was a 2011 dividend machine that I owned.  LMT's fundamentals have changed and as I noted in my review of 2011 dividend machines, I cannot consider LMT for 2012's dividend machine list because the debt to equity ratio has gone way up.

Monday, February 27, 2012

Utah Medical UTMD Could a tiny company qualify as a dividend machine two years in a row?

Dividend Machine for week of February 27, 2012  -  Utah Medical Products - UTMD


                I like Ben Stein and respect a lot of what he has to say about investing.  He loves ETF’s particularly and I do not like any pooled investments so we differ there.  He thinks ordinary investors will suffer when they try to invest in a small company that they think will go big.  He suggests using an ETF for this kind of investing.

Friday, February 24, 2012

Dividend Machine for week of February 20, 2012

Community Bank Systems, Inc.


                If I told you to buy a bank in March of 2008, would you believe that the dividend income from that investment would have increased over twenty-three percent?  Well, I am here to tell you that I am as shocked as you are, but Community Bank Systems, Inc. (CBU) has delivered.  Do you own any other investment that increased your income by over 23% in the past four years?

Tuesday, February 21, 2012

Risk Tolerance

Dear income investors,

The subject today is Risk Tolerance.


Risk Tolerance has become more real to every investor in view of the many potential problems that exist in this country and the world.

Thursday, February 16, 2012

Atmos Energy ATO Dividend Machine

Atmos Energy's corporate logoImage via Wikipedia
Dividend Machine for week of February 13, 2012

Atmos Energy, ATO is the company I have selected for the dividend machine for this week.   ATO was a dividend machine in 2011.   ATO, an energy company, continues to grow both the money it makes and the money it pays you in a dividend.  However, the stock price has gone now where since I profiled it last year.

Wednesday, February 8, 2012

Microchip Technology Dividend Machine again

Image representing Microchip Technologies as d...Image via CrunchBase
Dividend Machine for week of February 6, 2012
            Earlier this month I profiled a high yield (read high risk) bond and that is new.  The stock market may seem boring but this week, so far, I have found two new companies that qualify as Dividend Machines but neither one has covered call options that could boost our income.  And, I have been waiting to profile a third stock that I included in the 2011 Dividend Machine list until covered call options on it looked attractive.

Friday, February 3, 2012

Chrysler FIA Diversification and Eight Percent Bond Yield?

Chyrsler 300CChyrsler 300C (Photo credit: nino63004)          Yes folks, I bought a high yield bond.  I like the new Chyrsler (FIA) products and what I read about their improved sales and productivity.   Chrysler has a note that matures June 15, 2019 in just over seven years.  The coupon is 8%.  It is selling at a discount to par in the range of $98.75 providing a yield of 8.227%.

          This bond is callable at par plus consideration for the interest you would receive if you held it to maturity.  I am willing to take the risk on this bond to get more than eight percent income.  The CUSIP, which is the identification that you must know to ask your broker to shop for this bond is 17121EAB3.

Very Truly Yours,
TheMoneyMadam
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Wednesday, February 1, 2012

DIVIDEND MACHINE for week of January 30, 2012 MSA

Dividend Machine Mine Safety Appliances (MSA)
          
           This week (January 30, 2012) we have a company that I would call “steady as she goes” for our Dividend Machine pick. You might call it boring but this baby has been a Dividend Machine for quite a while.