Discover more from Covered Calls with Reinis Fischer
Latest stock buy 6 shares of WBA at $47.58 per share
On July 7, 2021, I bought additional 6 shares of Walgreens Boots Alliance Inc (WBA) paying $47.58 per share.
With its quarterly dividend of 0.46 cents per share, this latest buy has a dividend yield of 3.87% and will pay us an additional $2.76 every quarter (before tax). Awesome!
WBA is paying a dividend in the following months: March, June, September, and December.
It was agreed to re-invest and double up the previous month's dividend income to finance this purchase. As we took some $128 in dividend income in June, I doubled up this amount and bought 6 shares with WBA
We now hold in total 10 shares of WBA, In total, they contribute about $15.64 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one WBA share is $50.98
I’m looking to increase the total share count to 100, and then start selling covered calls on WBA stock.
Just for the illustration:
We could sell a covered call on WBA today (July 7, 2021) with expiry on August 6, 2021 (monthly options), with a strike price of $51, and get for that about $0.36 premium. That about 0.7% potential income return in 30 days.
there is no set timeframe yet when we are planning to reach 100 WBA milestone but it might be the second half of 2022
90 shares to go!