First Six Days of the Year
Thus far in the new year we have received eleven dividends totaling over $1,660. One of the key contributors to this income was our investment in STX: Seagate Technology Holdings PLC. This is an international investment, as STX is based in Dublin, Ireland. Ireland is green and I think STX is as well.
Please note two positions have been sold and I will not be receiving dividends from those investments going forward. The investments are WHF and FNDC.
STX Seeking Alpha Ratings
It is always wise to have a tool like Seeking Alpha when you are investing. I like to do a quick look at the Ratings Summary, Factor Grades, and the Dividend Grades. STX has a very rational dividend payout ratio of 31.65%, but the 5-year dividend growth rate is a paltry 1.46%. I supplement the dividend income with covered call options income. In essence, my true yield is a combination of dividend income and options income.
Fidelity Active Trader Pro
Another resource that is most helpful is Fidelity’s ATP. Even if you don’t use the ATP software, you can get the same information on the Fidelity Investment’s web site. It is just easier and faster to see what I need to see in the ATP Trade Armor screen. In just a few clicks I can see earnings dates, the equity summary score, and relevant dividend information.
STX Covered Call Options Income 2021
STX was a profitable position for both dividends and covered call options income. In 2021 I received $2,887.89 in options income from 37 trades. Each trade took about five minutes to enter, so for about three hours of work in 2021 I made almost $1,000 per hour from my STX options trades.
STX Dividend Income 2021
This is in addition to the $1,475.10 I received in dividends. You might be wondering why I received $700 thus far in 2022. The reason is quite simple: I significantly increased my investment in STX in the last twelve months. If I continue to hold my 1,200 shares, I will receive $840 next quarter.
I currently hold 1,200 shares of STX in my traditional IRA. However, 400 of those shares in now subject to being called away if the options expire in-the-money. If that happens, I will make a profit on the shares, and I can rebuy them if the price per share drops.