Next Dividend D-Day on the Horizon

 | Nov 15, 2013 | 10:00 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

wynn

,

mxim

,

mchp

,

ca

,

msft

I highlighted on Monday the upcoming Dividend Day on November 13, which should have yielded you plenty of income opportunities.

I also alluded to another "D Day" coming up next week. Next Tuesday the 19th (which also happens to be my daughter's 14th birthday -- Happy Birthday Allie!) will also yield another impressive inflow of income. You should be preparing today to capture the opportunities. The table below notes those upcoming ex-dates. I also include the days around the 19th, as there are a few opportunities then as well.

This time tech is the theme, which you might find troublesome given the poor results coming out of the sector -- most recently Cisco. I am not particularly bullish on tech fundamentals, either. But keep in mind that for dividend capture we are only seeking that the stock not decline during our short holding period. The names I am playing (highlighted in the table) are fairly stable businesses with high margins. Maxim (MXIM) and Microchip (MCHP) play in the analog semiconductor space, whose margins are as probably as close you can get to software in a hardware business. Microsoft (MSFT) and CA Technologies (CA) are lackluster as product companies, but have great cash flow and interesting yields. I play them consistently quarter after quarter with good results. I would not want to own them over earnings or other events, but should be fine for the next week or two.

I am also playing Wynn Resorts (WYNN), but this is a tough one. The dividend is quite large -- so large that I do not expect the stock to bounce back to my purchase price soon. However, I do think it will bounce somewhat. I am expecting to take a small loss on the trade, but to have the net work out. For example, I could collect the 1.78% of income but take a 1% loss, yielding an attractive 0.78% net return. I will do that every day of the week. The income is still good, and I can offset some of the capital gains I am collecting (unintentionally) on other good trades in this bull run.

Columnist Conversations

Lang:
Tuesday saw a massive reversal on Twitter stock that definitely caught my eye. Take a look at the chart below...
Boardwalk Pipeline Partners(BWP)is jumping pre-market. Bid ask $15.43 - $15.50, last trade atthe ask. + 3.06% ...
Market posts the third day of solid gains in a row. Will see if we can make it four a row before the long hol...
With the averages now flying upwards, with everyone scrambling to buy, it is startling to remember how palpabl...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.