Showing posts with label $DBD. Show all posts
Showing posts with label $DBD. Show all posts

Wednesday, November 18, 2015

DBD an opportunit to dump it when pocketing extra income

Owning Diebold, symbol DBD,  is about as exciting as paint drying.    But today I got a nice surprise.  Someone took the last of my DBD.





I wrote up a post about DBD during the summer where I profiled several call options that could make DBD owner's some nice income.   You can find that link here:http://www.themoneymadam.com/2015/06/diebold-selling-calls-to-lock-in-gain.html  .

The calls described above had expiration dates in August and they expired.  Last month on October 12, I sold $35 calls that were to expire this Friday, November 20, 2015.  The call premium I received was $.40 per contract.  I have owned my shares since October 2012, I have received regular quarterly dividends during that time with a yield on my basis of 3.89%.

I wanted to unload DBD because the dividend is no longer growing and recently their EPS has slipped below their dividend payout.  I sold calls that I thought had a good chance of being called away, also known as assigned. 

Indeed today someone took the last of my DBD.   The table below shows the gain from this transaction not including the dividend.

Today, DBD is trading above $36 so the call buyer also benefits as he/she bought today at $35 and could sell for an immediate gain of just over $1.00.   I prefer the trade I made.









While DBD qualified as a Dividend Machine in 2012 and I have to keep it in the model portfolio, I personally am happy that I was able to unload it while at the same time adding to income.

TheMoneyMadam
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Tuesday, June 9, 2015

Diebold, Selling calls to lock in gain

June 9, 2015

Diebold, symbol DBD, was a Dividend Machine in 2012.  See Link http://www.themoneymadam.com/2012/10/security-drives-dividends-for-october.html.   In 2012 DBD traded around $33.00.   Today it trades around $35.00 and sports a 3.26% dividend yield.  Why risk losing it with a covered call?

Selling calls to lock in gains

As I peruse my portfolio to determine if I can do better, I look at fundamental changes of every stock.  DBD is not a bad stock but it is no longer increasing the dividend as I would like.   Actually, increasing dividends is one of the most important factors I use to decide if I should rotate out of a stock into another.  Since I have a gain, and I would like more reliable dividend increases, I will sell a call and hope they take it.

With DBD, you can sell a July or August $40 call.  July will fetch about $.80 and August will fetch about $.90.    DBD's next ex-dividend date is expected to be August 20 and the call expires on August 21 so you may get the dividend with the August call but you will not with the July call.

The tables below present each of these calls.   Using my covered call calculator, you can see if this move is good for you.





TheMoneyMadam

Disclosure:  Long DBD with August $40 call
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Sunday, October 14, 2012

Dividend Machine Diebold (DBD) for week of October 15, 2012

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