Monthly Dividends

[william the wie]

More continuous reinvestment creates some extra compounding per year v, reinvestment per qtr. at 12% you get 12.6% on quarterly reinvestment but 12.7% monthly but more importantly it is easier to live off monthly checks than quarterly checks in case you are a retiree and the government shuts down.

 

[MarathonMike]

Good point, I've been heavily invested in dividend stocks for many years but I don't have a one that pays a monthly dividend. I think I read that there are around 40 companies that pay a monthly dividend.

 

[william the wie]

Good point, I've been heavily invested in dividend stocks for many years but I don't have a one that pays a monthly dividend. I think I read that there are around 40 companies that pay a monthly dividend.

32 that interest me but I require no currency issues and an active options market for the issues. I suspect the total number exceed 40 but ADRs and Toronto exchange issues I eliminate right at the start and the no options issues has also caused eliminations.

 

[Pavel Svinchnik]

I put a few dollars into VanEck Vectors Emerging Markets High Yield Bond ETFNYSE Arca HYEM). They're paying a 6.2% annual dividenend in monthly payments.

 

[william the wie]

I put a few dollars into VanEck Vectors Emerging Markets High Yield Bond ETFNYSE Arca HYEM). They're paying a 6.2% annual dividenend in monthly payments.

Is it optionable? It may be a fairly to extremely good investment vehicle I don't know but writing options is a decent objective way of getting in low and out high without using guess work. Likewise I want either faster compounding or increasing dividends. So thanks but no thanks. I really hate possible currency problems I've been caught in a few but I hope it works for you.

 

[Pavel Svinchnik]

I had some success with options around the time of the financial crisis in 2008. The market kept bouncing up and down, so I'd buy puts or calls on the S&P 500 and the VIX depending on which extreme the market was at the time, wait a few weeks, and cash in. Then things got uncertain, so I tried a straddle approach, buying both puts and calls, under the theory that whichever way it went, I'd profit. Unfortunately, the market held steady through the expiration date so I lost on both. I have been thinking of selling covered options as a way to make a few dollars.

 

[william the wie]

I had some success with options around the time of the financial crisis in 2008. The market kept bouncing up and down, so I'd buy puts or calls on the S&P 500 and the VIX depending on which extreme the market was at the time, wait a few weeks, and cash in. Then things got uncertain, so I tried a straddle approach, buying both puts and calls, under the theory that whichever way it went, I'd profit. Unfortunately, the market held steady through the expiration date so I lost on both. I have been thinking of selling covered options as a way to make a few dollars.

If you place yourself in situations where you are just about as happy if the option is exercised or expires you are in a better place. If you are like me you have pages of watch list and unless you get a big inheritance you need to get income to reinvest for retirement or emergencies. As I have already posted I like to use options as my timing mechanism for getting in or out of a position. Keeping losses small is my goal.