Making income in this market continues to be a challenge. Our 2011 dividend machines are producing greater than 4% yield but our 2012 dividend machines are producing about 3.8%. We need to look for other opportunities to boost our income.
Today I am looking at an international company that does not qualify as a dividend machine but is an almost dividend machine with call option potential. That company is TEVA Pharmacueticals (TEVA.)
TEVA earned $4.97 in its most recent fiscal year. The quarterly dividend is $.1972 which at today's price of about $45.73 is a yield of 1.72%. The dividend has increased every year for 12 years and the D/E ratio of .6497.
You can sell a call on TEVA with a strike price of $50 and an expiration in June for $.30. Here is how the income plays out.
Use the table below to determine if Teva is a good fit for you. It provides income and diversification.
Very Truly Yours,
TheMoneyMadam
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