Diary of a Dividend Diva: LLY, STX, CA, IP, INTC, ETN

Dividend traders, fasten your seatbelts! There is a deluge of dividends on the way, as is typical for this time of the quarter. Companies report earnings and declare dividends in the first month after the quarter ends, and the dividends go ex- the next month. As we look over the menu of juicy dividends on the way, now is a good time to exercise some discipline in the dividends we play, as that will help us to achieve better results.

A substantial number of quite large payouts, which I define at 1% or more, are on the way. However, as we look closer we notice the payouts are in sectors I generally consider unattractive from a trading perspective. Recall that we are trying to balance the size of a payout with how long we have to hold the stock -- the shorter the holding period, the better, as the strategy is all about capital utilization. Once a stock goes ex-, your capital is no longer earning income, and the sooner you move on to the next stock, the higher your income will be. The challenge is that some sectors are owned for the dividend, and the stocks trade fairly efficiently. Once they drop, they will take some time to return to your buy price, so you can get out. The longer you wait, the less income you can collect....269 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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