Saturday, March 31, 2012

When A Company Should And Shouldn't Pay Dividends

Currently interest rates, government bond yields, and borrowing rates are at all-time lows. This provides a puzzling choice for publicly traded corporations. Do they reward their investors with a dividend which could be a much needed stream of income, or keep the profits as cash reserves and reinvest it in the business? To read the full article please go to Seeking Alpha http://seekingalpha.com/article/344681-when-a-company-should-and-shouldn-t-pay-dividends

More Dividend Arbitrage: Seadrill, Williams, Vale

In my previous article Implementing Dividend Arbitrage: Verizon Wireless I discussed a strategy known as dividend arbitrage. This strategy consists of selling options on high yield stocks to both reduce risk and increase yield. Dividend arbitrage investors do not concern themselves with making gains in appreciation of stock price, but rather gains are achieved by collecting regular dividend payments. To read the full article please go to Seeking Alpha

5 Stocks That Could Rise Along With Government Bond Yields

In 2011, two Quantitative Easing packages, a Federal Funds rate of 0%, and great uncertainty on the state of the global economy all came together to propel the 10-year Treasury yield to record lows. U.S government bonds were one of the few investments with big winners in 2011, with investors snapping up every maturity and further depressing the short end of the yield curve. To read the full article please go to Seeking Alpha http://seekingalpha.com/article/318430-5-stocks-that-could-rise-along-with-government-bond-yields

Options Trades To Profit From Ford's Comeback

It is no surprise that American automakers are back with a vengeance. After almost 30 years of losing market share to their Japanese, German, and Korean rivals they are finally beginning to gain some of it back. American manufacturers -- in particular Ford Motor Company (F) -- are coming out with fresh, innovative designs with increased technology and build quality at many times more competitive prices than rivals Toyota Motor Corporation (TM) or Honda Motor Co. (HMC). To read the full article please go to Seeking Alpha http://seekingalpha.com/article/317751-options-trades-to-profit-from-ford-s-comeback

Gold: A Commodity Or A Currency?

Over the last 10 years gold has been on a seemingly unstoppable rally. The effects are everywhere, in cities across the country strip malls have been invaded by a swarm of “we buy gold” stores, the infamous Tupperware parties of suburbia have been replaced by gold buying parities, and a whole new crop of illiterate investors are buying gold. We have seen a resurgence of the gold bugs who have come out of the wood work to preach metal to all who will listen. To read the full article please go to Seeking Alpha. http://seekingalpha.com/article/317412-gold-a-commodity-or-a-currency


Implementing Dividend Arbitrage: Verizon Wireless

My favorite trade for low interest environments like those found today is dividend arbitrage. Dividend arbitrage is the process of buying fundamentally sound high yielding stocks and selling deep in the money covered calls. Selling deep in the money calls effectively doubles the amount of shares you can purchase, meaning 2x the dividends, without the use of leverage, and virtually eliminates your possibility for loss. In this post I will show you how you can implement dividend arbitrage on Verizon Wireless (VZ) common stock..... To read complete article please go to Seeking Alpha. http://seekingalpha.com/article/317047-implementing-dividend-arbitrage-verizon-wireless

Tuesday, January 10, 2012

New Articles

I would like to thank all of my readers for their continued support. I have recently moved most of my articles to Seeking Alpha. It allows me to reach a broader audience while at the same time express my opinion the way I see fit. From now I on I will be solely posting on Seeking Alpha. Here is a link my profile which included my newly published articles. http://seekingalpha.com/author/angad-guglani/articles