June 23, 2015
Just returned from a quick trip that left me without access to the internet. Upon my return I see evidence of my dividend/covered call income strategy.
GameStop, symbol GME.
Bought GameStop in March for $40.60. I bought it for the dividend, the recent dividend increases, the balance sheet and the opportunity for covered calls. I was so confident that GME could be a good income stock with growth potential I wrote about it; see link: http://www.themoneymadam.com/2015/03/gamestop-gme-new-money-for-old-people.html at that time the stock was trading closer to $44.00.
When I bought GME at $40 ish I sold an April $44 call that expired.
On April 22 I sold another $44 call that expired on 6/22/2015 with an expected dividend payment on 6/23/2015. Very nice to see the call expire, the premium from selling the call in the bank and the dividend delivered as expected and the stock trading above the strike price.
Income investors take note. Two turns at covered calls and two dividends since taking a position in GameStop. GME, a good income machine.
Disclosure: Long GME with calls