generating 1000 $ per month on 150 k investment

Quote from dwpeters:

Hi,
Here is a strategy: http://www.osam.com/pdf/Commentary_Sep10.pdf

Essentially the article says that if you have a portfolio of high dividend paying stocks, your principal at times may go down but at those times yields go up. In the long run the portfolio appreciates so it not only provides a generally consistent income but a generally increasing income. The assumption is that you rebalance each year into high dividend paying stocks.

yeah..dividends..you have split this one with Barry O..

http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5519.html


In 2011, dividend income (other than capital gain distributions from mutual funds) is taxed as ordinary income at your highest marginal tax rate.

PS : oh..i'm sorry.....share,not split..
 
Quote from dwpeters:

Hi,
Here is a strategy: http://www.osam.com/pdf/Commentary_Sep10.pdf

Essentially the article says that if you have a portfolio of high dividend paying stocks, your principal at times may go down but at those times yields go up. In the long run the portfolio appreciates so it not only provides a generally consistent income but a generally increasing income. The assumption is that you rebalance each year into high dividend paying stocks.

Until the company cuts the divvie. Then it will go down faster than Obama on Lloyd Blankfein.
 
Quote from dwpeters:

Hi,
Here is a strategy: http://www.osam.com/pdf/Commentary_Sep10.pdf

Essentially the article says that if you have a portfolio of high dividend paying stocks, your principal at times may go down but at those times yields go up. In the long run the portfolio appreciates so it not only provides a generally consistent income but a generally increasing income. The assumption is that you rebalance each year into high dividend paying stocks.
prior to 2007 bank stocks were considered safe dividend payers. how did that work out?
if your intention is to hold stocks for dividend income there is a better way. create your own dividend. sell cash secured puts on stable largecap stocks. i recommend you add another level of safety by selling puts on indexes or etfs instead of individual stocks.
 
Quote from unclebond555:

With $150k I can make the whole $12k in one week but that wold be trading options ..

With the benefit that you could also lose the same $12K or more in a week...
 
After 20 years of devising option strategies that have yielded way more than that, the answer to your question is to bet Zenyatta to show twice.
 
Where do traders watch for breaking news? I seem to be way behind any moves. Are there any free services that are fast?
 
Quote from Eliot Hosewater:Quote from dwpeters:

Hi,
Here is a strategy: http://www.osam.com/pdf/Commentary_Sep10.pdf

Essentially the article says that if you have a portfolio of high dividend paying stocks, your principal at times may go down but at those times yields go up. In the long run the portfolio appreciates so it not only provides a generally consistent income but a generally increasing income. The assumption is that you rebalance each year into high dividend paying stocks.

Until the company cuts the divvie. Then it will go down faster than Obama on Lloyd Blankfein.

Sorry, I hadn't read the article at the time. It actually looks pretty impressive.
 
Quote from Eliot Hosewater:

Sorry, I hadn't read the article at the time. It actually looks pretty impressive.

Only if you can survive the drawdowns. 41% drawdown in 2008 is way too much for most investors who want long-term growth. Most investors would rather make a small amount and be safe rather than go through the ups and downs of trading that active traders go through.

But it definitely sounds pretty interesting, I'll have to look into this as well.
 
Quote from jedwards:

Only if you can survive the drawdowns. 41% drawdown in 2008 is way too much for most investors who want long-term growth. Most investors would rather make a small amount and be safe rather than go through the ups and downs of trading that active traders go through.

But it definitely sounds pretty interesting, I'll have to look into this as well.

Hmm, I actively trade because I want higher returns and lower drawdowns than the market can provide. The drawdown of this model is more in line with the buy and hold approach, which I consider far riskier. In anycase I think it is an interesting perspective, to focus on the income stream (which steadily increases with this model) and not the account value which fluctuates with the market.
 
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