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6 Best Choices for Dividend-Capture

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Leggett & Platt (LEG)

LEG designs and produces various engineered components and products. The company was founded in 1883.

Yield: 5.63%
Dividend Amount: 28 cents
Ex-Dividend Date: June 13, 2012
Beta: 1.16

Strategy: Buy LEG and offer to sell the June $20.00 strike or lower call for 45 cents over the intrinsic value.

In almost all cases, I sell the call option first to ensure the stock option leg is complete. If not, after qualifying for the dividend, I will look to close out the covered option with a gain of about 12 cents, plus the quarterly dividend paid by the company.

My last step (completed before making a trade on the same day) is to check company announcements, and news sources for possible price moving events. This is especially critical during earnings season.

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