Dividend Stocks update
Hi All,
I continue to add to my stock positions with 2 dividend stocks. One is Medical properties Trust (MPW) and the other is Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG). With MPW I receive a dividend of 10.4% and NBXG 12.3%.
I do not recommend these stocks. Buying dividend stocks should be a conservative way to invest and you must invest according to your own risk tolerance. I, or anyone else, knows how long these companies will be able to pay these dividends. I like the dividend paying history on these 2 stocks but that does not mean they will continue to pay in the future.
I like when my dividend stocks are down a little from where I bought them because I reinvest my dividends; the lower the stock, the more shares I get when the dividend gets paid. That doesn’t mean I want the stock to collapse. The problem is, if the stock is down from your buy-in price and they cut their dividend you are in a stock losing money and not getting a dividend. Dividend payment history is very important.
Medical properties Trust Inc. (MPW)
I own 1552.29 shares of MPW. I actually bought 1400 shares and the other 152.29 shares I received free. 82.29 shares I received from reinvesting dividend payments and the balance of the 152.29 shares I bought with the premiums from selling Call options against my shares. I’m going to continue this strategy as long as MPW is paying their dividend. The company already announced their next dividend. The Ex-Date is 6/14/23 and the Pay-Date is 7/13/23. This means anyone owning the stock before 6/14 will receive 29¢ per share on 7/13.
I’m also holding 1000 shares of MPW in my margin account. These are the shares I’m selling Call options against. I sold an option today and received $290 which bought me 33 shares at $8.60. Below is the option I sold:
Sell to Open 10 MPW 5/12/23 $8.50 C @ $29¢ (+$290)
MPW really isn’t fluctuating much. If I get assigned I just buy the 1000 shares back and sell another Call. So far it’s been working.
Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG)
The reason I got into this stock is it has a very high dividend and a good payment history. However, with today’s economy it seems like everything is a gamble. I owned 100 shares and today I bought another 400. I now own 500 shares at $9.71 and receive a dividend of 12.3%.
The main reason I’m in this stock is it pays a monthly dividend. When reinvesting this dividend the shares will build up faster. The dividend is 10¢ per share every month which is $1.20 a year. This is compounding every month, so when I receive shares one month I’ll get a 10¢ (12.3% yearly) per share dividend on these shares the following month also. These shares will build faster.
The last dividend payment I only owned 100 shares so I only received 1.02 shares. The next dividend was approved and the Ex-Date is 5/12/23 and the Pay-Date is 5/31/23. With the next dividend I should get about 5 shares. But remember, that’s every month. Compounded monthly I might get close to 100 shares on the year. I didn’t have time to do the math lol.
NBXG does not have options so these shares will only grow from buying shares and dividend shares.
If you have any questions on dividends, dividend stocks or my strategy, send me an email.
Successful trading,
Steve
The Options Coach