Sector Diversification

I tend to buy investments in three sectors: Financials, Healthcare, and Technology. However, as I was recently helping a friend review some investments he was considering, I came upon Tyson Foods (TSN) and decided to see if it was a worthy addition to my ROTH IRA. TSN is a Consumer Defensive food company.

After finishing my review I purchased 100 shares of TSN and I also sold a covered call option on my shares. The option price is $67.50 and the option expires May 16, 2025. I received $19.32 for the option contract and expect to receive a $0.50 per share dividend if I still own the shares on May 30. Because today’s closing price for TSN was $61.39, I don’t think I have anything to worry about.

StockRover Images

I captured two images to show you what I looked at when considering this investment. First of all, it is a good fit because it is a dividend growth investment. This is a large-cap stock headquartered in Arkansas.

Seeking Alpha Review

To illustrate one of the tools available on Seeking Alpha, I also took two images from their “Virtual Analyst Report.” I don’t always look at that report, but it does a nice job of summarizing the characteristics of the investment, including the explanation of the QUANT rating factors.

Seeking Alpha Dividend Scorecard

Finally, I always look at this scorecard for any stock that pays a dividend. The dividend payout ratio, 5-year dividend growth rate, and the 13 years of dividend growth are all optimistic signs.

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Of all of the resources I use, the most helpful is Seeking Alpha. If you decide to explore a Seeking Alpha subscription, please use the following link. Seeking Alpha

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