During July, I received notice of the following dividends paid in various accounts for a total of $321.92:

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.

This trade provides a 1.46% simple yield and an annualized 21.91% yield on my potential assigned basis.  The annualized yield appears high but it is because there are only 24 days left to expiration.

MO was trading around 21.95 when I made this trade and is trading up a little today at 22.06 as I write this.  I made the trade for the annualized yield for the short term view.  However, I already own 200 shares of MO at a basis of 35.48 with existing Covered Calls on them for Jan11 at the $20 strike price.  I would not mind if the Aug Puts are assigned to me.  If they are I will close out the Covered Calls on the existing MO shares, combine the new ones for a total of 400 shares at a reduced basis and sell new Covered Calls.

MO pays a good dividend of .35 per quarter for an annualized return of 6.35% at the current market price of 22.06.  Of course, the return on my basis is lower but still acceptable at 3.95% on the last payout.

I consider MO a part of my long term core holdings and will continue to accumulate it or sell Puts on it when I can do so below my average basis.

I received notice of the following dividends paid in various IRA accounts for a total of $298.00:

I use my basis per share, excluding dividends, 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 already own 200 shares of MO with existing Covered Calls at the 20 strike on them expiring in Jan11.  My basis on those shares is 35.48, excluding dividends received.  MO currently pays a .34 quarterly dividend which is about a 7% annual yield.

If I am put these new shares I would greatly average down the basis on my total MO holdings.  I consider MO to be one of my core holdings and look to accumulate at these lower prices so will probably allow these shares to be Put to me.

I have recently received notice of the following dividends paid in various IRA accounts for a total of $242.00:

Dividends Received

I use my basis per share, excluding dividends, 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.