Monday, November 29, 2010


Waste Management, ostensibly bought by Warren Buffett, had been vascillating between a C and D at Schwab (sell and hold). DITM position was called away Friday before today's ex-d date, with the January call being exercised. Total annualized return based on a 10-month holding (sans this dividend): 10.8%, just about the average (minus the plungers like BP). Glad to get rid of that position, as it has been falling well before the market.

Nota Bene: Jeremy Siegel, of Stocks For The Long Run fame, stated in his book that for over a century no 20-year slice of market history ever contained a lower level than at the beginning- that string broke as of 2000.

Today on CNBC Michael Thomson of Standard and Poor's mentioned that dividend increases on S&P500 stocks doubled year-over-year ; he said people are buying stocks for INCOME now, not bonds!

New position taken today (don't try this at home) - I noticed MAT, on a nice uptrend, going ex-D this week with an ANNUAL dividend of $.83 and over $.50 extrinsic call value on the April call, would return an annualized 12.8% if all goes well (no special adjusted option, etc.)

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