WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR FACEBOOK PAGE OR HERE.


ADDING AT&T (T) SHARES

We closed our books last week revealing that we made over $2,600 in January (after quite slow start) which allowed us to invest some of the proceeds into good dividend growth stocks.

We use 50% of the options trading proceeds to buy DGI stocks according to our watch list. Whenever a stock is marked as a buy and we have generated enough income, we buy shares equivalent to $600 dollar investment. If we have more than $600, for example $1,300 dollars, we then buy (2) different companies (for example ATT and STX as we did in January 2019). If in our watch list, there are multiple shares marked as “buy” we buy the one with the highest dividend yield. Once a stock is purchased, it is marked with “X” so we do not buy it again once we make new money trading options. Then we continue buying all stocks in the list marked as “buy”. After all marked stocks are purchased, all “X”es are removed and we start from the beginning.
 

Today, AT&t met all our criteria to be purchased. So we bought 20 shares (added to our existing position):

 
BTO 20 T shares @ 29.86 debit
 

AT&T





8 responses to “ADDING AT&T (T) SHARES”

  1. Kevin CK says:

    Hey Martin,

    Not sure if my comment went through the first time. I’ve been following your website for a while. Much respect to you for being consistent and transparent with your trades over the years. It’s a rare quality and something I would like to improve upon on my own trading blog. I actually wrote a post about T, VZ, ADM and a few other dividend stocks including the recent dog KHC and GE. I like to trade puts and verticals with a close eye on technical developments in the long and short term charts.

    T looks good overall, though I would not classify it as clearly bullish. It is more neutral to slightly bearish long term from a technical perspective. But the dividend yield, acquisition of Time Warner (with HBO) and its positioning in the telecom industry give it enough cushion for me. VZ is a much more bullish chart from a pure technical perspective. Anyway, just my 2 cents.

    Great work!

    • Martin says:

      Hi Kevin,

      I agree with you that T is not a good stock as far as its price growth, more likely neutral to downward, although I do not think T would sell or drop more. It may be sliding down. However, I believe ATT is good as a dividend income stock. Thus I am OK to invest in T for income only and not for principal growth.

      Thanks for stopping by.

  2. Kevin CK says:

    Hey Martin,

    I’ve been following your website for a while. Much respect to you for being consistent and transparent with your trades over the years. It’s a rare quality and something I would like to improve upon on my own trading blog. I actually wrote a post about T, VZ, ADM and a few other dividend stocks including the recent dog KHC and GE. I like to trade puts and verticals with a close eye on technical developments in the long and short term charts.

    T looks good overall, though I would not classify it as clearly bullish. It is more neutral to slightly bearish long term from a technical perspective. But the dividend yield, acquisition of Time Warner (with HBO) and its positioning in the telecom industry give it enough cushion for me. VZ is a much more bullish chart from a pure technical perspective. Anyway, just my 2 cents.

  3. Kevin CK says:

    Hey Martin,

    I’ve been following your website for a while. Much respect to you for being consistent and transparent with your trades over the years. It’s a rare quality and something I would like to improve upon on my own trading blog. I actually wrote a post about T, VZ, ADM and a few other dividend stocks including the recent dog KHC and GE. I like to trade puts and verticals with a close eye on technical developments in the long and short term charts.

    T looks good overall, though I would not classify it as clearly bullish. It is more neutral to slightly bearish long term from a technical perspective. But the dividend yield, acquisition of Time Warner (with HBO) and its positioning in the telecom industry give it enough cushion for me. VZ is a much more bullish chart from a pure technical perspective. Anyway, just my 2 cents.

  4. Iris says:

    I bought T @$31. I am worried about the downtrend of T. How do you make money from options?

    • Martin says:

      If there is a downtrend in T, it will most likely not be for a very long time. The long term trend of T is moderately up; true, it completely fails to beat the market, but with dividends, it is a good income stock which at least preserves capital long term, so if you plan holding T for only a couple of years then it is not a stock for you.

      I make money selling options and collecting premiums doing so, you can follow my Facebook page to see the trades.
      Thanks for stopping by.

  5. DivHut says:

    Like the T pick up. It’s one of my potential buys for the month of Feb. Also looking at ABBV and MO. Many great high yielding names to choose from these days.

    • Martin says:

      I agree that many great names came out recently and still are cheap pick. ABBV got out of my buy list due to expected lowered earnings as Humira is being phased out (in 2020 ?). Otherwise I would be buying that stock. But now I am waiting to see how that goes before I start buying it again.

      AT&T is no brainer. Many of its financial metrics improved since I have looked at it last time, so I am gladly buying.

      Thanks for stopping and commenting.

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