This Day On The Street
Continue to site
ADVERTISEMENT
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

Ripe Dividend-Stock Picks: TIF, LVS, XEL, HNZ

The services industry is one of the best for smaller investors to perform due diligence. Most casinos are busy on a Saturday night, but knowing first hand which ones are filling the tables on a Tuesday night adds a lot of color to financial statements.

The Sands is one that should be looked at for either a long-term hold or a dividend capture.

My only real concern is Sheldon Adelson, the CEO, possibly stepping down. During the worst of the financial crisis, Adelson backstopped LVS with hundreds of millions of dollars to ensure the company stayed liquid.

Adelson knows how to make money, and his leadership with LVS creates a premium for the shares. While having a minimal impact on a dividend capture, a change of leadership is a risk factor to consider for longer-term holds.

It is important to sell the call option hedge at or near the asking price for at least the minimum amount over intrinsic value. I don't want the option hedge unless the sale will provide at least the minimum 40 cents over intrinsic value.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 40 cents. The most I can make is 65 cents, if I hold the covered call through option expiration day and the stock gets called away.

Note: When learning a new trading strategy, it is better to use a simulated trading account first. Stockpickr is a great tool to practice new strategies and learning about the market. I use Stockpickr and recommend it. It is easy to make mistakes when starting out on a new strategy and mistakes cost a lot less with a simulated account. After a level of confidence is built, then it may be time to move into a real money account.

At the time of publication, Weinstein held no positions in stocks mentioned.
3 of 3

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!
SYM TRADE IT LAST %CHG
HNZ $72.49 0.00%
LVS $54.49 -1.38%
TIF $85.97 -1.32%
XEL $34.41 -1.32%
AAPL $132.65 1.82%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports