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Jarrod32

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jarrod - are you nibbling on any energy on this dip? i added to CVX and MPLX on this pullback

On Monday's dip I was looking pretty closely at adding to my COP position when it dipped down into the 53 range, but didn't pull the trigger. Was hoping for a bit more off a pullback. Guess I missed that bus...

I've also been eyeing up KMI, but waiting for a bigger pullback there too.
 

Jarrod32

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I'm holding. It could well get to $60, but probably not anytime soon. It may very well see $50 again before it gets to $60, but should eventually get there.

From last week regarding KO. Upon further review (and the earnings report), I would like to reverse my claim and say that I may well get to $60 before it sees $50 again.
 

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Got some already. No plan to sell anytime soon. A dip would be nice though (unlikely).
 

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Organon (the Merck spinoff stock) declared a 28 cent quarterly dividend. At current share price ($33.50) that translates to about a 3.3% yield.
Grab the fiat while the usd still has some value. Time is ticking away.
 

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picking up a few shares of compass minerals - cmp

they sell road salt and some agri minerals. recently revealed a significant lithium deposit discovery

yield is 4.x percent, ex dividend in about 3 weeks
 

Jarrod32

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Anybody finding anything buyable in the current market dip? I have a few on my watchlist that are getting close. A few more days like Monday and I might be a buyer...
 

Jarrod32

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Was watching COP again when it dipped into the mid 56 range on Monday. Was going to see about adding some on Tuesday if it had kept going down, but they raised the dividend and announced the purchase of some more Permian assets from Shell and the share price shot up again.

One that I am watching if it finds its way into the low 50s...
 

edsl48

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I came across this and it looks pretty interesting to me. My age limits my time frame to where I am more focused on a steady flow of income rather than growth but todays bond funds just don't cut the mustard being their rates are below the rates of inflation. I do have some qyld that was mentioned earlier in this topic/thread and might add some of this to provide "ballast" to my otherwise growth oriented portfolio.

A Tamer Take On Mega Cap Growth​

Jessica Ferringer
August 30, 2021

After a brief slump in the spring, growth stocks have come back into favor with investors. The 10-year U.S. Treasury yield has fallen from 1.7% at the beginning of April to 1.3%, a decline of nearly 25%. This rate slump has fueled growth names as inflation worries have abated.


For investors who are worried that growth valuations might have gotten ahead of themselves, option-based strategies that provide exposure to these names might be a valuable way to take some risk off the table.

Though growth stocks have dominated value for the past decade, the past two years have been especially kind to stocks such as those held in the Invesco QQQ Trust (QQQ). Cumulative performance for the tech-heavy ETF is 45% above that of the SPDR S&P 500 ETF Trust (SPY). Compared to the iShares Russell 1000 Value ETF (IWD), it has outperformed by 67% in the same time span.
For investors who want to take equity risk off the table but aren’t compelled to trade in that exposure for interest rate or credit risk, there are strategies that use options to change the risk profile of this growth stock exposure.

Creating The Collar

The Nationwide Risk-Managed Income ETF (NUSI) is one such strategy. Similar to a covered call strategy like the Global X NASDAQ 100 Covered Call ETF (QYLD), the fund invests in the stocks of the Nasdaq-100 and sells out-of-the-money call options on the index in order to generate income.

This feature means the fund has a significantly higher yield than its option-free counterpart. The distribution yield for NUSI is 5.0% versus just 0.5% for QQQ.

In addition to writing out-of-the-money calls, the ETF uses some of this premium generated to buy a protective put. This limits the downside potential for the fund.
NUSI uses a protective net-credit collar strategy. This means that the premiums received from writing the calls are higher than the premiums paid for purchasing the put.

Similar But Different

If this sounds similar to defined outcome ETFs, it is. In fact, FactSet classifies NUSI as such a fund.

But rather than having a specified cap and buffer like other defined outcome ETFs, NUSI actively manages its options holdings. This means that in strong up markets, the call options may be closed early to minimize potential losses.

The fund does not have an annual outcome period like most defined outcome ETFs either, instead rebalancing on a monthly basis.

In a strong up market like the one we’ve experienced since equity market lows in March 2020, NUSI has significantly lagged QQQ. However, this underperformance is to be expected given the limit on upside potential due to the writing of the call option.
Looking at the more volatile environment in February and March shows how NUSI can provide protection in down markets. NUSI lagged QQQ’s ascent in the first three weeks of February but protected against the downturn in March.
How To Use NUSI

While equity or fixed income funds often have a clear use case, NUSI can be used in several ways depending on the client’s needs.

One rationale for use of this ETF is the higher yield. With the S&P dividend yield at 1.3%, the 10-year U.S. Treasury yield at 1.3% and the ICE BofA U.S. High Yield Index Effective Yield at 4.2%, income-sensitive investors have limited options when it comes to generating yield. NUSI can be another tool in the income toolbox.

The ETF can also be an option for those who want to maintain some exposure to the high-flying growth names that have been significant beneficiaries of the “stay-at-home” trade, as long as they are willing to give up some of the upside for protection from the downside. The ETF could be paired with QQQ to temper volatility or used in its place for a less volatile option.

It could also be seen as a type of bond proxy, enabling investors to take equity risk off the table with the benefit of not taking on interest rate risk. Year-to-date, NUSI has outperformed both the iShares Core U.S. Aggregate Bond ETF (AGG) as well as the iShares iBoxx USD high Yield Corporate Bond ETF (HYG).
Funds that use options are complex and can be difficult to understand, but they can also be a source of risk management and diversification for your portfolio.

When it comes to more volatile areas of the market such as that represented by the Nasdaq-100, funds such as NUSI offer a safer way to gain partial exposure to this space while limiting downside risk.

Contact Jessica Ferringer at jessica.ferringer@etf.com
 

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Anybody finding anything buyable in the current market dip? I have a few on my watchlist that are getting close. A few more days like Monday and I might be a buyer...

bought the dip and sold yesterday/today. including MO, CVX, ETHE, EPD, UGA, LOGI, MPW, WPC

still hold some MO, CVX, EPD, MPW, WPC for long term
 

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I came across this and it looks pretty interesting to me. My age limits my time frame to where I am more focused on a steady flow of income rather than growth but todays bond funds just don't cut the mustard being their rates are below the rates of inflation. I do have some qyld that was mentioned earlier in this topic/thread and might add some of this to provide "ballast" to my otherwise growth oriented portfolio.

A Tamer Take On Mega Cap Growth​

Jessica Ferringer
August 30, 2021

After a brief slump in the spring, growth stocks have come back into favor with investors. The 10-year U.S. Treasury yield has fallen from 1.7% at the beginning of April to 1.3%, a decline of nearly 25%. This rate slump has fueled growth names as inflation worries have abated.


For investors who are worried that growth valuations might have gotten ahead of themselves, option-based strategies that provide exposure to these names might be a valuable way to take some risk off the table.

Though growth stocks have dominated value for the past decade, the past two years have been especially kind to stocks such as those held in the Invesco QQQ Trust (QQQ). Cumulative performance for the tech-heavy ETF is 45% above that of the SPDR S&P 500 ETF Trust (SPY). Compared to the iShares Russell 1000 Value ETF (IWD), it has outperformed by 67% in the same time span.
For investors who want to take equity risk off the table but aren’t compelled to trade in that exposure for interest rate or credit risk, there are strategies that use options to change the risk profile of this growth stock exposure.

Creating The Collar

The Nationwide Risk-Managed Income ETF (NUSI) is one such strategy. Similar to a covered call strategy like the Global X NASDAQ 100 Covered Call ETF (QYLD), the fund invests in the stocks of the Nasdaq-100 and sells out-of-the-money call options on the index in order to generate income.

This feature means the fund has a significantly higher yield than its option-free counterpart. The distribution yield for NUSI is 5.0% versus just 0.5% for QQQ.

In addition to writing out-of-the-money calls, the ETF uses some of this premium generated to buy a protective put. This limits the downside potential for the fund.
NUSI uses a protective net-credit collar strategy. This means that the premiums received from writing the calls are higher than the premiums paid for purchasing the put.

Similar But Different

If this sounds similar to defined outcome ETFs, it is. In fact, FactSet classifies NUSI as such a fund.

But rather than having a specified cap and buffer like other defined outcome ETFs, NUSI actively manages its options holdings. This means that in strong up markets, the call options may be closed early to minimize potential losses.

The fund does not have an annual outcome period like most defined outcome ETFs either, instead rebalancing on a monthly basis.

In a strong up market like the one we’ve experienced since equity market lows in March 2020, NUSI has significantly lagged QQQ. However, this underperformance is to be expected given the limit on upside potential due to the writing of the call option.
Looking at the more volatile environment in February and March shows how NUSI can provide protection in down markets. NUSI lagged QQQ’s ascent in the first three weeks of February but protected against the downturn in March.
How To Use NUSI

While equity or fixed income funds often have a clear use case, NUSI can be used in several ways depending on the client’s needs.

One rationale for use of this ETF is the higher yield. With the S&P dividend yield at 1.3%, the 10-year U.S. Treasury yield at 1.3% and the ICE BofA U.S. High Yield Index Effective Yield at 4.2%, income-sensitive investors have limited options when it comes to generating yield. NUSI can be another tool in the income toolbox.

The ETF can also be an option for those who want to maintain some exposure to the high-flying growth names that have been significant beneficiaries of the “stay-at-home” trade, as long as they are willing to give up some of the upside for protection from the downside. The ETF could be paired with QQQ to temper volatility or used in its place for a less volatile option.

It could also be seen as a type of bond proxy, enabling investors to take equity risk off the table with the benefit of not taking on interest rate risk. Year-to-date, NUSI has outperformed both the iShares Core U.S. Aggregate Bond ETF (AGG) as well as the iShares iBoxx USD high Yield Corporate Bond ETF (HYG).
Funds that use options are complex and can be difficult to understand, but they can also be a source of risk management and diversification for your portfolio.

When it comes to more volatile areas of the market such as that represented by the Nasdaq-100, funds such as NUSI offer a safer way to gain partial exposure to this space while limiting downside risk.

Contact Jessica Ferringer at jessica.ferringer@etf.com

i hold some SPYD. it owns the 80 highest yielders in the sp500. yield is running at 4.x percent
 

Jarrod32

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Was watching COP again when it dipped into the mid 56 range on Monday. Was going to see about adding some on Tuesday if it had kept going down, but they raised the dividend and announced the purchase of some more Permian assets from Shell and the share price shot up again.

One that I am watching if it finds its way into the low 50s...

What I said about COP a few weeks ago.

Ah ha ha ha ha ha ha ha.

It hit $72 and I sold it all.

Took 75% of the proceeds and put it into CVX and the rest is added to my growing cash position. The new CVX position generates more dividend income than the previous COP position.
 

Jarrod32

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Thinking of dumping my KO and taking profits. Anyone think it has more to go? 52wk high was $56.48 at time of post it's $55.26.

Old post, but KO has been rangebound between around $52.50 and $57 for quite a while now.

Never dipping low enough to inspire me to add to my position, never getting high enough to get me to sell and get out.

Just sittin' back and collecting that dividend payment every quarter. Good enough for now I guess.
 

MrLucky

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That's what I ended doing too.
 

Mujahid

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LMT down 10%
 

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LMT down 10%

thanks for the heads up. i'm a buyer at 300ish. company has a history of increasing dividends at a good clip. $2.8 per quarter now
 

Jarrod32

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I've been forced to take a look at LMT as well. Not ready to pull the trigger yet. I did have an open order on VZ at 51, and that triggered a couple weeks ago and I added a bit. KO and KHC report tomorrow...I will be watching them. A bad report and KHC could dip into buying territory. I would be a buyer of KHC under 35.
 

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I've been forced to take a look at LMT as well. Not ready to pull the trigger yet. I did have an open order on VZ at 51, and that triggered a couple weeks ago and I added a bit. KO and KHC report tomorrow...I will be watching them. A bad report and KHC could dip into buying territory. I would be a buyer of KHC under 35.

i own khc too. it's tempting me at 36, but i'm holding out

i added at bit to abbv at 107.x - they have a couple of things cooking in late stage
 

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Anyone like cim?
 

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Anyone like cim?

too hot for me. maybe if i was younger :)

Chimera Investment Corporation is a real estate investment trust primarily engaged in investing in a portfolio of mortgage assets on a leveraged basis.
 

Jarrod32

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Anybody like T?
Not right now. Dividend looks good, but it will be cut once they complete the sale of the Time Warner assets. Of course, T shareholders will likely get some shares of stock of the purchasing entity. I might review T again once that is complete and the smoke clears, but right now not interested in T. I do have a lot of VZ...added a bit to it a week or two ago.

My personal preferences. DYODD.
 

Stop Making Cents

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Not right now. Dividend looks good, but it will be cut once they complete the sale of the Time Warner assets. Of course, T shareholders will likely get some shares of stock of the purchasing entity. I might review T again once that is complete and the smoke clears, but right now not interested in T. I do have a lot of VZ...added a bit to it a week or two ago.

My personal preferences. DYODD.
I just bought a bunch of T for the dividend and stock spinoff, and because it's come down in price. I thought about VZ also. I'll take another look at that one.
 

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I just sold T a few days ago

Took a loss getting out, but about 3 years of dividends helped ease the pain.

They have been in a slow decline since I bought them and dollar cost averaging hasn't helped.

I figured I'd get out before the spinoff and divi cut.
Anybody like T?
 

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Any thoughts on K ?
 

Jarrod32

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Any thoughts on K ?

It is on my short watchlist. I want to add another consumer staple to go with my KO. I'm watching K, GIS, and KHC as the leading candidates to add to my holdings. K probably has the most share price upside, at least short term, but KHC has the better dividend yield. All three are at decent valuations right now. I don't think you can go wrong with any of them. K probably jumps once the strike is settled, but that could be tomorrow or a month from now. Picking up some K before the labor issue is settled could work out well...
 

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Oil is hot right now and EOG, nicknamed the "Apple of Oil" practically doubled its dividend yesterday and also is going to pay a special dividend of $2.00 per share. This is the second dividend increase this year from EOG who, with this increase, will be paying $3.00 per year giving a 3.5% yield that is considerably higher than its past history. Many of the oil E&Ps are going to pay higher dividends instead of throwing the funds at more developement. Higher oil prices are predicted to be much higher meaning more special dividends in the future.
 

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Picked up a chunk of KHC the other day. Not really worried if it drops a little bit, I'll just avg down, as it's a dividend play. Have been selling my TXT that I bought years ago (great recession) for $10/sh (now $75ish) to fund the KHC. TXT is paying 8 cents/yr, KHC @ $1.60/yr is much better.
 

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Oil is hot right now and EOG, nicknamed the "Apple of Oil" practically doubled its dividend yesterday and also is going to pay a special dividend of $2.00 per share. This is the second dividend increase this year from EOG who, with this increase, will be paying $3.00 per year giving a 3.5% yield that is considerably higher than its past history. Many of the oil E&Ps are going to pay higher dividends instead of throwing the funds at more developement. Higher oil prices are predicted to be much higher meaning more special dividends in the future.

mplx announced a special divy too. the globalist warmers did us oil investors a yuge favor
 

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VALE mining yield currently close to 20%.
Slowdown in china could mean less demand for iron ore, so could fall further, but...


 
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VALE mining yield currently close to 20%.
Slowdown in china could mean less demand for iron ore, so could fall further, but...



I like it. The dividend will probably fluctuate but I bought like 50-150 shares, not quite sure. I'll let it recover some and use it to sell covered calls if they ever get a decent premium. Talk about revenue growth though it's up there with FB but given very little credit because it's "not sustainable".
 

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Why do you guys like KHC? it doesn't seem to be trending in the right direction - Newbie here fyi
 

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Why do you guys like KHC? it doesn't seem to be trending in the right direction - Newbie here fyi

It is largely a turnaround story. They had problems when the two companies merged, and there was some serious mismanagement at the time. The stock dropped and bottomed in 2019 at around 25. That is when the current CEO, Miguel Patricio, was hired. He has a strong track record and has the company back on the right track (in my opinion). They have paid down some debt, sold off some of their weaker product lines, and are expanding into overseas markets (particularly South America). The stock has been kind of stuck in the current range since 2019, but the ship appears to be righted at this point and set to grow into the future. Current P/E is around 19, dividend yield over 4%, and debt to equity is down to around 50% so everything appears to be trending right. Buying here is based on the premise that we are buying at the approximate bottom, looking for a steady uptrend (though not necessarily a major breakout) moving forward.

Just my general armchair analysis.