Yesterday I mentioned my interest in two micro-cap stocks that are thinly traded. They are ALCO and ISTR. The first is consumer-staples-related and the second is a regional bank. The risk is always greater with small-cap, micro-cap, and nano-cap stocks. However, the rewards can also be quite healthy. Here are the overviews from Seeking Alpha for both investments.
ALCO and ISTR Dividends
Rarely do I see companies with numbers like ALCO and ISTR when it comes to a five-year dividend growth path. Of course, history is no guarantee of future earnings and dividend growth. On the other hand, the payout ratio for both investments is rational and leads me to believe that a dividend cut is unlikely. ISTR also has a remarkable frequency in the increase of the dividend. Most companies increase their dividend annually. ISTR has certainly done something different.
This Week’s Covered Calls and Puts
This week I bought 500 shares of Ford to add to my holdings. I then sold covered calls on those shares for income. If the shares are called, I will also have a capital gain. I also sold a put for 100 shares of Wal-Mart (WMT) because I am willing to buy the shares at my put price. Here are all of my covered call and put trades for the week. I continue to make some good additional weekly income using options.
I own 100 shares of ALCO and 100 shares of ISTR as long-term investments. I also have significant holdings in Ford that are a long-term position. The buys I have done recently are for the purpose of creating income using covered calls.
Hi Wayne. This is Scott Dalton. I received an email from Fidelity saying that Four Corners stock I have is voluntary corporate action. They said they would sell for me for a charge. Or I could buy more of the stock to have more than 100 shares. I only have 18 shares now. Any Ideas. Thanks
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Hi Scott, I received this notice too. I have always ignored these and have yet to see a voluntary corporate action that is appealing. This one seems rather costly. I’d rather sell when I want to sell and buy when I want to buy. I wouldl ignore it. Wayne