Thursday, November 7, 2013

Dividends & Income - QCOM yields dividends and covered calls

This is a fast moving situation this morning.   I love it when a company has improved fundamentals but guides lower and gets slammed in the market.

Within the last few minutes I was able to buy Qualcomm (QCOM) at just under $67.  Then I sold January $72.50 calls on that position.    The tables below show the fundamentals of QCOM as a dividend company and the gain from the covered calls.

Qualcomm (QCOM) Dividend Fundamentals

QCOM is not a dividend machine because the yield is under three percent.   However, I have been able to produce more than four percent yields using a combination of dividends and covered call premiums.   Add to that the capital gain if the call is exercised and you have a winner.    Now we just need history to repeat itself.

Qualcomm (QCOM) Covered Call Yields

Good dividend and income investing ... The Money Madam