Showing posts with label Darden Restaurants. Show all posts
Showing posts with label Darden Restaurants. Show all posts

Thursday, June 18, 2015

DRI high consider calls

I personally had all my DRI taken on calls.  Notice no dividend increase, again.  However, very nice capital gain.  Consider calls.  July  $72.50 for $.80.  MM

Darden Restaurants declares $0.55 dividend $DRI

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Thursday, March 26, 2015

DRI on a tear

Nice news for an under appreciated Dividend Machine.  MM

Zacks' Bull Of The Day: Darden Restaurants $DRI

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Tuesday, November 4, 2014

Covered Calls on bad Dividend Machines DRI, INTC

If you are a buy and hold investor and your emphasis is income, you can improve your financial success by using covered calls. 

Two big reasons that covered calls will help you be a better investors are:   (1) covered calls boost your income and (2) they restrict your ability to sell low.   

Two stocks that I bought as Dividend Machines that have not been as stellar as I had hoped are DRI and INTC.    I could have sold low.   But because I used covered calls, I boosted my income over time and I did not sell them at their lows because I could not; the shares were on lease to the call buyer.

Below I discuss two of my less than stellar Dividend Machines. One stock is considered dead money with management issues and an over 4% dividend yield.

The second an example of a stock that pays under a 3% yield with no yield appreciation.

Darden Restaurants, symbol, DRI

Darden does not qualify as a Dividend Machine today because their most recent earnings are less than their dividend payout.  They continue to pay, but not increase their dividend.   Debt to equity is still o.k.  DRI, is dead money except that it moves between $47 and $53 quite often and this provides the opportunity for boosting your income by selling a covered call.   If your stock is called away so be it.  Or you could end up like me and sell calls on this baby several times a year.  I want an additional one percent in yield from the call so in the case of DRI, trading at $52.67 on Tuesday, November 04, 2014 the call premium has to be no less than $.53.    Here is the call I will look for tomorrow.


Where are you going to get nearly 2 percent on a less than 90 day obligation?  Do I really want to lose a stock like DRI? 

Intel, symbol INTC

Intel’s dividend yield is only 2.62% and it we have not received a raise in quite a while.   But you can keep you position in Intel and make it yield much more with the call I will try for tomorrow.  INTC closed at $34.54 so I want at least $.35 from a call.  This call traded at $.47 today.

Intel's call is different from the DRI call.   I would be willing to add to my position in INTC at this point provided that I could sell a call like this.  I would not be willing to add to DRI at anything above $50.

Work your portfolio of income stocks to squeeze more income from your losers ... or as I like to call them "less than stellar assets."

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Wednesday, October 15, 2014

DRI Boring Safe Incime

Vote-counting time at Darden Restaurants $DRI
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Monday, May 26, 2014

Should Income Investors buy at the High?

Buying at the high; should you?

If a company pays 3.5% in dividends and has raised dividend payouts every year including the very difficult years of 2008, 2001, 1994, 1992, 1987 (spans my investing career,) and has a good balance sheet you should buy it even at the high.    Don’t put all your money in that stock but it is okay to nibble.  In this post let's look at some other opportunities.  
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Thursday, December 6, 2012

DARDEN RESTAURANTS - DRI - Buy, Sell, or Hold?

bahama breeze facade
bahama breeze facade (Photo credit: goodiesfirst)

Update on Dividend Machine Darden Restaurants (DRI)

Even simple investing strategies like dividend machines present challenges.  This week, one of the dividend machines I have profiled and that I own took one big hit.(2012 DRI post)  (2011 DRI post)The stock dropped from $52.50 per share to $47.77 per share.    While I always stress that income investors need to concentrate on income and not on capital gains (or losses), these kinds of moves in a stock are troubling.
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Tuesday, December 20, 2011

Chevron and Darden call income

          Darden restaurants (DRI) was profiled at a stock price of $47.36.  Today, DRI is trading around $43.92 which is a about a 7.25 percent discount.  I want to add more of this Dividend Machine and I always like a sale.  However, since my goal is income, I will sell covered calls on my new shares; let's analyze how
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Tuesday, December 6, 2011

What to do with Darden Restaurants (DRI)

It is hard to do, but income investors have to insulate themselves from price fluctuations, otherwise you should not invest in stocks to create income.   If you bought Darden Restaurants (DRI) when it was profiled, you cannot help but be unhappy that the stock price is down about 10%.  What should an income investor do?

I bought DRI when I profiled it so I had to  make a decision about my position.   I like the dividend pattern DRI dividend history.  While the news is that DRI will have slower EPS (earnings per share) than previously expected, I still like four percent growth of earnings.   Therefore, I am going to add to my position.

Very Truly Yours,

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Monday, November 7, 2011

Dividend machine for November 7, 2011 Darden Restaurants, symbol DRI

The company's former logo, used until 2009Image via Wikipedia

                Income investors, the 52nd dividend machine is Darden Restaurants, symbol DRI.  DRI provides income investors with an opportunity to diversify.  You know we tend to be heavy into industrials, telecoms, utilities, and big pharma, so it is important to add a dividend machine, our final dividend machine for (fiscal year 2011), that meets all the criteria and that adds some diversification.
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