I see opportunities in this market and one of them
is INTC.
INTC goes up and down and pays the dividend
every quarter. Let’s make money from the
company’s dividends and more income on the INTC’s stock price.
INTC
DIVIDENDS
Read this excellent article from “Seeking Alpha.”http://seekingalpha.com/article/1604562-what-happened-to-intels-dividend
; Mr. Mauer provides all the information you need to know to take a flier on
INTC.
His point that INTC did not increase
their most recent dividend suggests that future dividend increases are
suspect. In this excellent article, you
can learn about INTC’s dividend fundamentals and decide for yourself if you
trust INTC dividend increases.
We who depend on the The Money Madam’s Strategy must
be disciplined. With that in mind I
looked at the four criteria I use to select a dividend machine.
This table illustrates INTC’s current dividend
machine bona fides.
INTC CALLS
When you can find a dividend machine that is in a
trading range, you take the risk that the sellers are right and the company
stinks. During your time of indecision make money
using covered calls.
Look for calls that are between 90 and 100 days out
so you get the quarterly dividend the call premium and of course the gain
because calls on a quality company like INTC should always result in a gain if
they exercise the call option and take your stock. With a stock like Intel, you
may very well be able to buy it back lower.
You never know.
If you still own INTC on November 5, 2013, you
should receive no less than $.225 /share.
If INTC does not increase the
dividend and you think the company will not provide you with dependable income
increases, you can sell it and move into another dividend machine. If they increase the dividend you can hope
the market will ignore the good news and not take your stock; then you can look for more
calls throughout the year while you cash that fatter dividend check.
The Money
Madam
* Since 2002 the dividend has increased on occation, INTC will increase twice in a year and on occasion it will wait for 5 quarters. If history is picture to the future the dividend should increase?
