While I was out of town last week an open order to sell 3 CKR Jun09 10 Covered Calls was filled for a net deposit of $94.75 in an IRA account.  My basis for these CKR shares is now 16.40, excluding dividends received.

CKR is a fairly local company for me and pays a .06 per quarter dividend for about a 2.65% yield at the current stock price of 8.60.  Of course, I own it at about twice that so my yield is more like 1.3%.

I’ve said that I have a preference for local companies and certainly for those that pay a dividend.  CKR fits into both of those categories.  It’s not the best stock I own but I do continue to sell Covered Calls on it and receive dividends which add to my cash flow.  As my basis reduces the yield on invested capital increases.

Many of the stocks that I own and write Covered Calls upon also pay dividends.  Dividends happen on a regular basis and add significantly to my annual investment income.

This week, I received the following dividends in various accounts for a total of $30.63:

I use my basis per share to determine the simple and annualized percentage return because I feel that it gives me a better representation of the value of the dividends as they relate to my portfolio.  Note that PDS pays a monthly dividend.

Today I sold 3 CKR Feb09 10 Covered Calls for a net deposit of $109.75 in an IRA account.  My basis for these CKR shares is now 16.72 less dividends received.

The Feb09 10 strike appeared to be the only real option for CKR.  Other months and/or strikes were either too far out or didn’t offer enough premium.

CKR pays a small dividend of .06 per quarter which is about 2.77% annually.  I originally purchased CKR several years ago when I was interested in owning local companies.  I also eat at the Carl’s Jr. restaurants now and then.  They seem to have finally digested most of the Hardees acquisition from a few years ago.  I also read that they are competing favorably with other chains with new breakfast items.