The dividend capture approaches that I describe below do work some of the time. My experience is that they expose the investor to excessive risk relative to the payoff–or they don’t pay off often enough. Buy and hold dividend paying stocks If you love the stock, this is a fine strategy, but then it really isn’t a dividend capture strategy. The dividend is just a …
The surprising date / value / normalized volume correlation on the S&P 500 between 2004 and 2010 continues, with the 3rd of March SPY closings only differing by 3%. If 2010 continues to track 2004 then we should see an ongoing ramp in trading volume, with a 30 day moving average of around 300 million shares per day on SPY, compared to the current run rate …
I continue to scan for ways to profit on what I believe will be the inevitable rise of interest rates in the future. I think the classic 30 to 40% weighting in bonds that financial advisers propose for balanced risk, moderate growth portfolios is going to be a big loser in the next couple of years. This Bloomberg webpage has a daily graphical update …
Did covered calls on SDS (double short S&P 500). Bought SDS at 35.86, sold March 34 calls at 2.37 for a net investment of 33.52. Extrinsic value is .48, so the max profit potential is .48/33.52 = 1.4%
The data for the chart of DIA’s dividend history below is from SPDR’s website. If you would like the dividend history for another security, see this post.
