My YTD dividends are up by $145.36 on a monthly average from last year.  That represents a 24.06% increase to date year over year.  I attribute the increased dividends to a few companies raising their dividends and to my purchasing additional dividend paying stocks.  During June, I received notice of the following dividends paid in various accounts for a total of $1.025.17.  June has historically been one of the lower months for dividend payouts, at least in my portfolio, however it was a very good month this year.

Please notice that PGF is an ETF and pays dividends monthly.  The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months.  The actual annualized dividend yield may be more or less than illustrated here.

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.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.

Today, 6/3/11, I BTC 2 ANR Jul11 40 Covered Calls and STO 2 ANR Jan13 40 Covered Calls for a net deposit of $476.91 in an IRA account.  My basis for these ANR shares is now 26.25, excluding dividends received.  These numbers provide a 8.33% simple yield and an annualized 5.10% yield on my basis.   

I used the basis for the MEE shares as my basis for the new ANR shares because then number of shares will be the same as far as the option contracts are concerned.  This is not a taxable account so there is no tax consequence of that decision.  It just made my accounting of things a little simpler.  After all, it was that initial investment that got me here.

To make these numbers I considered the $10 per share that I received as part of the cash received for the sale of the Jan13 40 Calls.  I was initially going to consider it as a dividend which is probably a better classification.  But, I did not want to burden the ANR basis with this transaction.  This will help me keep things in perspective.  I will sell the extra 5 ANR shares next week and book that income as dividend income.

It does not appear as if ANR pays a dividend so I anticipate that I will let it be called away in Jan 13.  Of course it may be that the Calls will expire worthless or that I can make a decent return by rolling out the Calls in Jan 13.  Time will tell.

My YTD dividends are up by $44.11 on a monthly average from last year.  That represents a 7.30% increase to date year over year.  I attribute the increased dividends to a few companies raising their dividends and to my purchasing additional dividend paying stocks.  Also, BP finally restarted its dividends although at half the pre-spill level.  During March, I received notice of the following dividends paid in various accounts for a total of $667.77. 

Please notice that PGF is an ETF and pays dividends monthly.  The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months.  The actual annualized dividend yield may be more or less than illustrated here.

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.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.

Despite BP not paying a 3^rd or 4^th quarter dividend my YTD dividends are up by $32.27 on a monthly average from last year.  I attribute the increased dividends to a few companies raising their dividends, to my purchasing additional dividend paying stocks and very importantly to special dividends by FCX and VRX this month.  VRX has announced that they do not intend to continue paying dividends and the shares were called away from me so I will not be receiving that dividend again.   Normally I would have received an additional $420 in BP dividends in August and again in November.  BP is starting to talk about paying dividends again in 2011.  If that comes to pass I am hopeful that 2011 will have even better dividend performance.  During December, I received notice of the following dividends paid in various accounts for a total of $1,173.01. 

Please notice that PGF is an ETF and pays dividends monthly.  The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months.  The actual annualized dividend yield may be more or less than illustrated here.

 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.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.

I also would have liked to have roll up to a higher strike price with these trades but could not do it as a net credit transaction and I am not currently interested in trading current cash flow for a higher future strike price.  Maybe I can roll it up in July if the price stays above my new strike price.

This trade provides a 3.16% simple yield and an annualized 5.28% yield on my basis.  This return is a little less than my average ROI which currently runs around 6.33.  MEE goes ex-dividend next week and with the current market price well above my strike price I anticipated that the shares might be called away so somebody could capture the dividend, as small as it is.  I was just about ready to let it be called away and then decided to go ahead and roll it out again to capture the dividend myself.  With any luck MEE will once again fall below my current strike price allowing them to expire and allowing me to once again sell new Covered Calls on it.  With a beta of 2.1 MEE might just do that.

MEE pays a small dividend of 6 cents per quarter which translates to an annualized return of .81% on my basis of $29.57 at the last payout.  As I continue to decrease my basis the return will increase but it will be sometime before it approaches my target threshold of 4%.  Even so, I continue to hold MEE for the combined dividends and option premiums.