Quote:
Originally Posted by lewdog
Dividends are great until they aren’t.
AT&T about to cut theirs in half. Also, if you still lag a market index because they pay a dividend but the stock price rarely moves, you’re coming out behind. Dividends are paid off the share price, they aren’t something “extra.” A stock paying 5% dividend with a share price that never moves is worse than owing an index. Plenty of these are out there but people get so fixated on a dividend like it’s “free money.”
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If your view is a relatively sideways market for a while, what do you think of a strategy of selling ITM covered calls on stocks with dividend dates coming up and just rolling those over until the market picks up?
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“When war breaks out people say: 'It won't last, it's too stupid.' And war is certainly too stupid, but that doesn't prevent It from lasting.”
~Albert Camus, The Plague.
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