cicerone imposter wrote:
chai, Congrats on your gains for this year. I just let my funds ride the roller coaster, but for YTD, not doing badly at all - considering that the economy is in the dumps with our unemployment rate not making any headway. Since I'm bond heavy in my funds, I don't worry too much: intermediate bonds are up over 9%.
You'll notice that post was from back in March.
Things are starting to recover, I'm still in the black. Overall, around 11%
In addition, since around the beginning of June of this year, I've been very causiously playing around with flipping some stocks for the dividends. That's separarte from the above.
So far, in the past 100 days, I've grossed $2100 in dividends on a 25K pot. Extending that out, that's like making over 31% per annum, maybe $7-8K a year. Of course that's all taxable, but it's a nice little chunk of change.
Yeah, I know this is risky, did a lot of reading on how people lose their shirts.
However, I'm not putting all my eggs in one basket, AND I will only consider doing this with a stock that meets ALL of certain criteria. Most important of which is I've only done this with stock that are basically flat over a long period of time. I've bought and sold 5 different stocks so far, have done a little bit better than breaking even on the sale (including commission). I have 2 stocks right now that will gross me $530 at the ex-dividend date of 9/28/10, this coming Tuesday. Of course on the ex-dividend date the price will automatically drop by the dividend amount, but I should still be able to sell them both either on the ex-dividend date, or shortly after, break even, and earn the dividends.
I found an ex-dividend calendar on the internet. I copy and paste it into a spreadsheet I made, then I just have to plug in the price of the stock to get the rate of interest per annum that stock is going to earn. I've only been looking at stock that will earn more than 9%.
Every week or so I go back in and copy/paste any updates to the calendar into my spreadsheet, to see what is coming up.
After working out the kinks, it takes me maybe a half an hour every 2 weeks to update.
Then I'll analyze the stocks that look interesting. Doesn't take long at all.
The only thing that's made me slap my forehead so far was the fact I had to hold onto this one stock for more than 5 weeks after the dividend date for it to break even. That would have been fine, I'm patient, and I knew the stock would inch back up.
The day I was finally able to see it, was ONE DAY AFTER the deadline I when I could have bought a stock and earn a 35% dividend.