This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Best Choices for Dividend-Capture

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Reynolds American (RAI - Get Report)

Reynolds American, through its subsidiaries, manufactures and sells cigarette and other tobacco products in the U.S.
Yield: 5.83%
Dividend Amount: $0.59
Ex-Dividend Date: June 07, 2012
Beta: 0.57

Strategy: Buy Reynolds American stock and offer to sell the June $40.00 strike or lower call for 53 cents over the intrinsic value. I will look to close out the covered option with a gain of about 14 cents, plus the quarterly dividend paid by the company.

Large yield stocks like Reynolds at 5.83%, often attract a lot of interest in dividend capturing, so the option premium may be hard to get. If my shares are called away the day before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 53 cents. The most I can make is $1.12 if I hold the covered call through option expiration day and the stock gets called away.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GCI $34.95 0.00%
HRB $31.23 0.00%
PEG $40.98 0.00%
RAI $74.70 0.00%
WM $52.88 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports