This week only one of my calls was taken as a result of the buyer exercising their right to buy my stock and that company was the COP spin off Phillips (PSX.) PSX was sort a freebie; like shooting fish in a barrel. The spin off cost basis is about $30.00 per share; the call strike price was $35 and the premium was $1.25. I received a greater than four percent yield from the call premium and an over sixteen percent gain from selling the stock for a total 20.83% gain. Folks this is good income investing.
An even better investment was GPC. The stock was not taken and boy am I glad. Genuine Parts Company (GPC) formerly known as Genuine Auto Parts is a company I wish I had owned for more years than I have. See the links below about GPC's inclusion in the very exclusive dividend machine lists of 2011 and 2012. About every 3 or 4 months I find the opportunity to sell a call at a strike price very near to GPC's all time high. Somehow, GPC is rarely taken. Someday it will be taken and I will be sorry. But income investors have to remember that there is always another company to buy that pays a nice dividend and has the growth to command covered call income.
Very Truly Yours,
TheMoneyMadam
GPC - May 2012 dividend machine pick
GPC - November 2010 (f.y. 2011) dividend machine pick
PSX and GPC Covered call Data provided below.
