An ideal investment portfolio includes both capital appreciation and
income. Dividend paying stocks have been shown to outperform non-paying
stocks in total returns. Some of the factors that lead to superior
results from dividend paying stocks include the additional fiscal
discipline required of companies paying dividends. The cash pouring out
of these investments takes company profit that is directly shared with
stockholders. Taking profit in the form of dividends also gives
portfolio owners the optionality of cash flow that non-dividend paying
stocks lack.
If income is desired dividends may generate income without having to
liquidate shares and trigger undesired capital gains tax issues. Some
of the world-class supercycle commodity companies in my portfolio share
their profits with shareholders in the form of dividends, albeit some
payouts are pretty paltry.
Copper giant Freeport-McMoRan (FCX) pays their stock holders a dividend
yield of 1.45% as of this writing. Precious metals royalty
darlings Franco-Nevada and Wheaton Precious Metals pay dividends
yielding 1%, and 1.4%, respectively. Two of the very best
commodities sector investments offer no dividend income at all: Uranium
Royalty Company and Ivanhoe Mines.
Of course I appreciate all the dividend income I can get from a
portfolio of poised commodity sector all-stars. But we can do a lot
better creating our own dividends, squeezing income out of our desired
portfolio by writing low risk naked put options.
Access our prolific world-class brain
trust using proprietary AI in the unique development of phenomenal
alternative investment strategies.
How
To Get Paid To Build A Best-In-Class Supercycle Commodities Portfolio
Instead of just buying these world-class company shares outright, you
can get paid to offer downside insurance to investors hedging their
long position (or investors just speculating to the stock’s
downside) by selling naked put options. That may sound scary to some,
but the practice actually lowers your risk by guaranteeing heavily
discounted acquisition prices.
Selling naked put options to hedgers and speculators allows you to make
income in the form of the option premium the option buyers pay you for
just doing what you were going to do anyway - acquire your favorite
shares. For example, let's say you wanted to buy the world-class copper
mining giant Freeport-McMoRan. Instead of just buying it,
we’re going to get paid to own it!
Options
are sold in lots of 100 shares. Freeport-McMoRan (FCX) is trading at
$42.24 as of the very moment of this writing. The average bid/ask
premium paid for a $42 put strike with a one month duration put option
is $1.42. As the put option writer, the strike ($42) is the price that
the put option buyer has the right to own the shares you optioned (but
don’t yet own) when the option expires in a month (or earlier
in American style options).
This strategy is a naked put because you don’t own the shares
yet. If the price does fall, the option buyer has the right to put the
shares to you at the strike price ($42) up to the time that the option
expires (in 30 days).
So, you're getting paid $1.42 to buy the stock at
$42 and it's currently trading $42.24. You're pocketing 3.3%
in
one
month for the obligation to own a stock you want to own anyway.
On a annualized basis you're getting paid 39.6% for agreeing
to buy a stock you want at a price you want it. This
stock's only paying a 1.4% dividend yield!
If the stock drops, you own it just as if you paid for it, except
you're getting a .24 cent discount you'd otherwise be willing to pay
for it.
If the stock trades sideways or goes up, you keep the
annualized 39.6% cash and you rinse and repeat.
At STEALTH WEALTH | Confidential we have a portfolio of long-term bull
supercycle commodities we are getting paid to acquire. We use
technical analysis to enhance our timing and profitability of this cash
machine we use to acquire supercycle best-in-class commodity companies.
Join the fun!
access
step-by-step
what, how & when to strike in our seminal monthly
strictly
limited to 500 investors worldwide.
Exponential
Wealth Compounding Through Shrewd Alternative Investing
The
exclusive portal to
shrewd alternative investments you've never
heard of designed by hedge fund trusts and family office
investment financiers
who prefer these storied gems remained obscured.
imagine . .
.
turning
your secure
bitcoin into
a safe passive
income
work horse;
gaining
cost-free generational wealth
by just front loading your investments through this
genius insurance investment;
scooping
up stupidly
discounted bonds
from spooked investors selling perfectly solvent company
debt
into a bloody wall street;
getting
paid
double-digit option
premium to build your desired investment portfolio;
acquiring
critically-acclaimed
octogenarian celebrity
art which pieces pop on passing;
double
penetrating two
double-digit returns each, from the
same
capital;
participating
in
even-odds short-term moonshots
in
futures,
warrants, and alternative markets designed for 10:1 asymmetric
short
term pops;