Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘monthly income stocks’

Know the Rules of Investing

In a recent interview, Tony Robbins stated he has coached a successful trader for more than 20 years. The person he is talking about is Paul Tudor Jones, one of the most successful investors of all time and owner of the Boston Red Sox baseball team. Robbins found Jones, and other wealthy, successful people like him, were constantly looking to learn more about money. He stated:

It isn’t about the money! That’s why I call it ‘MONEY: Master the Game, his latest book.’ It is a game. A lot of people get offended by that, like ‘Oh my God! How could he call it a game?’ It is. “The wealthiest people in the world know it’s a game, and the reason they succeed is they know it’s a game. They know there’s certain rules. If you know the rules, you can win and if you don’t you’re gonna lose. Rather than be pissed about it, learn. “

I agree in being successful requires knowing the rules of the game. In my perspective, the rules are the trading plan – designing a strategy and knowing when to enter and exit a trade. At Get Rich Investments, we focus on producing income each month. To be consistent, e follow a set of rules we have learned from over 20 years of investing. The markets are always changing due to events, direction trends and volatility, This is why our income strategy incorporates several options to be successful. These strategies allow our members to be agile and to profit regardless of market sentiment and volatility.

Some investors are comfortable earning a 3-4% dividend yield to meet their income needs. If you seek more return, then join our income plan to earn 10-15% in income each year. We focus on world class stocks with nice dividend payments. But we juice our returns by collecting option income in addition to dividends. This strategy works with all sizes of account amounts- you don’t need a million to started. And, the sooner you get compounded your returns the more income you can create each month.

You can create 100s of monthly income checks using monthly dividend stocks.

Start learning the rules of successful investing.  Subscribe to the Monthly Income Plan.

The Magic Number to Save for Retirement

Financial advisors always dodge the question of how much to save for retirement. There are research papers that contradict each other. They suggest there is no magic number for all or “it depends” or “it’s complicated.” I don’t buy this malarkey from the industry. Here is what I suggest and how I fund my accounts.

Don’t give up hope. From most research there’s a pretty useful rule of thumb for all people: Count on your fingers and … Save 10% — now.

Between you and your employer, set aside at least 10% of your paycheck. If your employer contributes 3%, then your share is at least 7%. If the company kicks in 5%, then you save at least 5%. If your employer does nothing, set aside at least 10% of each paycheck on your own.

Of course, there will be times when you’re between jobs or you need your money for a pre-retirement-age emergency. In those cases, you can put your money in a Roth individual retirement account (IRA) account. That way, you can take your contributions out without penalty. (There are also Roth 401(k) accounts, though they have more complicated withdrawal rules.) Don’t let the fact that you might need money someday keep you from saving for retirement now.

At Get Rich, we follow a monthly stock dividend plan where we get monthly dividends. We invest in 10 to 30 different stocks, notes and CEFs to diversify our holdings. To prevent yourself from running out of money in the golden years, reinvest 10% of your dividends back into your accounts. Therefore, if you are living on the dividends, you get a pay raise each month! And, your capital can leave a legacy for your family forever. Lastly, it is passive income that can be created regardless of where you live and play.

Subscribe today to start your monthly income plan.

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How To Get Paid Monthly Royalties

A royalty trust is a type of corporation usually based in the United States or Canada.  In general, trusts usually own oil and natural gas wells, rights to wells or rights to the mineral deposits.  Royalty trusts are similar to real estate investment trusts (REITs) as they are tax free if they payout 90% of income to shareholders.  Most royalty trusts trade on major US stock exchanges.  Others trade in Canada and have a pink sheet listing in the US.

So many corporations were using the trust advantage that Canada changed the regulations starting January 1 2010.  This will force some trusts to convert into a regular corporations which will lower their dividends.  However, this does not  lower their status as monthly income stocks.

Non-Canadian investors owning a Canadian royalty trust is subject to a foreign income tax of 15% of payouts.  This 15% tax can be claimed on US taxes from a Form 1099.  This makes Canadian royalty trusts better investments for taxable accounts in the US.  In non-tax accounts such as an IRA, you will be double taxed by Canada upon distribution date and US when funds are withdrawn from the IRA.  The US royalty trusts do not have a 15% foreign tax so they can be held in tax-deferred accounts.

Over the last six months, there has been a significant quest for high yield investments.  This has decreased the yields on trusts from double digits to single digits because of the increase in share prices.  This lessens the appeal of royalty trusts at time.  It would be better to patiently wait for a market correction to initiate a new position.

Here is one to consider:

Cross Timbers Royalty Trust

TICKER: CRT

MARKET VALUE: $91.7 million

DISTRIBUTION YIELD: 9.9%

Cross Timbers Royalty Trust (CRT, $15.09) has existed since 1991 and earns royalty income from Texas, Oklahoma and New Mexico drilling properties. Most of the trust properties are located in the prolific San Juan Basin and all are owned and operated by the XTO Energy subsidiary of Exxon Mobil (XOM). Production comes from 4,900 oil and gas wells spread across nearly 60,000 acres.

Reduced gas production and higher development costs in 2017 caused trust distributable income to decline by 5% to $6.05 million, or $1.009 per share. Production volume and the monthly distribution have been erratic in 2018. Cross Timbers has paid out 82.5 cents per share to investors through seven months. As long as the average holds steady, CRT should pay out roughly $1.41 – a 9.3% yield that’s actually less than the projected forward yield using the most recent distribution.

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You Can Help End Poverty

Real Estate Monthly Passive Income

For investors seeking consistent monthly income along with using passive vehicles, look at stocks with monthly dividends. Imagine, having multiple monthly income streams such as 10 or more stocks paying you each month. Then, add covered call investments from Get Rich Investments to live the life your desire.

Realty Income Corp styles itself as “the Monthly Dividend Company,” and frankly, this conservative retail real estate investment trust (REIT) deserves the title of king of the monthly dividend stocks. Realty Income has paid its investors like clockwork for 559 consecutive months and even raised its dividend for 77 consecutive quarters.

It has a yield of 3.9%, a stock is always going to be considered more risky than a bond, but Realty Income is about as close to a bond as you can realistically get in the stock market. Its cash flows are backed by long-term leases to high-quality tenants. Its properties are generally high-traffic retail sites that are mostly recession proof and “Amazon.com proof.”

We see total revenue growth of approximately 7% in 2019, moderating to 5% to 7% in 2020 driven by acquisitions, rising rents and stable occupancy. Occupancy at the end of Q4 2018 was 98.6%, near the highest occupancy rate within the past 10 years and up from 98.4% in the prior year. We estimate occupancy to remain near its historical average of 98% due to the desirable locations and non-discretionary retailer demand.

We raise our target price by $8 to $73, equal to 22.4x our 2019 FFO per share estimate of $3.26, and above the peer average of 15.5x. We start 2020’s FFO estimate at $3.40. O reported Q4 FFO of $0.73 vs. $0.61, $0.01 below consensus. Year-end occupancy increased to 98.6% from 98.4% in the prior year while rents under lease were up 0.8% for Q4 and up 0.9% for the year, which we find acceptable given O’s tenants are under triple-net leases. We continue to believe O will execute well and stick to its core competencies. We like that O has taken advantage of its current stock price and a favorable market, raising $539 million in Q4 from sale of common stock, a prudent move to help fund future acquisitions. We think long-term investors will continue to benefit from O’s predictable cash flow, but we reiterate our Hold opinion on valuation. O usually trades at a 20% premium-to-net asset value (NAV), but at its current 40% premium we would wait for a more attractive opportunity to buy.

 

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You Can Help End Poverty

Close These Positions for Monthly Income – 6.4% in a Month!

Our investing plan starts by capturing option income on a monthly basis. You will learn this is easier than renting houses, creating a startup or delivering pizza for a side hustle on the weekends. You can make $1000’s of dollars each month to sustain the level of income you desire. We sell options on stocks that gives us premium income as soon as we enter the trade. Then, we will repeat this option trade over and over several times each month to increase our income. Let me start by telling you – you’re going to like how this money looks and feels in your account.

That’s like getting several Social Security checks in a single month or getting a paycheck every week without having to work a job for a single minute. Best of all, you can sign up to get these checks today regardless of your age, income or which state you live in.

All you’ll have to do is decide how many of these freedom checks you want, stake your claim in this massive payout … sit back … and watch the cash pile up. I’ve already shown a few people just like you how to grab checks like this.

Many have already made out like bandits. Here is the proof:

We have two more winning PUT trades to close out this week for big gains! To make this level of income in a few weeks is a great opportunity. We will release new trades in the coming week.

SSYS is now trading at $24.25 so close the position to lock in your 6.4% gain!

TRADE: Look at the January 2018 22.5 PUT trade. For each 100 shares of SSYS stock you want to control, sell one Jan 2017 22.5 PUT option for a $1.35 debit per option or better. That’s a 6.4% return on the PUT trade.

MTOR is now trading at $24.48 so close the position to lock in your 3.9% gain in 22 days!

TRADE: Look to sell a January 2018 24 PUT for about $0.90. This creates a return of 3.9% to expiration (29 days) or greater than 49% annualized.

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You Can Help End Poverty

Income Trade Opportunity for 12% in 28 days

As income investors, we seek to create consistent monthly income by selling options to collect monthly premiums. This has been successful for our investors for years. Option selling offers another method to diversify investing strategies beyond traditional dividend investing. We have combined technical stock events with our strategy to identify high returns option selling opportunities. This income trade will generate a return of 12% return.

Stock: Spark Therapeutics, Inc. (ONCE) is a gene therapy company. The Company focuses on treating orphan diseases. It has a pipeline of product candidates targeting multiple rare blinding conditions, hematologic disorders and neurodegenerative diseases. Its pipeline includes a product candidate targeting choroideremia (CHM), which is in a Phase I/II clinical trial and a product candidate for hemophilia A, which is in a Phase I/II clinical trial. Its product investigational candidate, voretigene neparvovec, is intended to treat a genetic blinding condition or inherited retinal disease (IRD).

We have identified a a pattern called Flag (Bullish), providing a target price for the short-term in the range of 90.00 to 93.00 on Spark Therapeutics (ONCE). The faster moving average recently crossed above the slower moving average, signaling a new uptrend has been established.

A Flag (Bullish) is considered a bullish signal, indicating that the current uptrend may continue. After a steep rise in price, the pennant reflects a temporary pause in the uptrend, consisting of two parallel trendlines that form a rectangular flag shape.

Spark Therapeutics announced on August 9 the closing of the previously announced underwritten public offering of its common stock pursuant to an automatically effective shelf registration statement that was previously filed with the Securities and Exchange Commission, including the exercise in full by the underwriters of their option to purchase an additional 690,789 shares from Spark at the public offering price of $76.00 per share, less the underwriting discount. The exercise of the option brought the total number of shares sold in the offering to 5,296,053, and increased the aggregate net proceeds to Spark to approximately $380.4 million, after deducting underwriting discounts and before offering expenses.

Strategy: We want to sell a covered on ONCE using the September 2017 80 Call. For each 100 shares of ONCE stock you buy, sell one Sept 80 PUT for a $3.50 credit or better. Your cost of the trade is ~$71.75 or so on a stock currently trading above $75 per share. That’s potentially a 11.5% return in 28 days for an assigned trade.

This is a great example of how investors can create monthly cash from these income producing strategies. This is an excellent way to create a side hustle income without consuming too much of your time each day. For others, they have built an income large enough to live on without being employed by the man. When your monthly income exceeds your living expenses, you have achieved financial independence.

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Mailbox Money for Life

We all have a vision of the future about the type of life we have to live. For some, it includes a life of leisure which I must admit is very enticing. For others, it may entail relaxing into a nice life in retirement. Regardless your vision, you need a plan to get started today. I have this in mind with my personal investing and write my newsletter around designing strategies to produce the income to fulfill readers goals for their chosen lifestyle. It helps to start looking at the end goal (future state) and work backwards to your income investing (current state) to lay the foundation for growth. Here is an excerpt from a recent article published here.

One challenge to funding retirement is getting a handle your lifespan. And what we know now is this: You and/or your spouse are likely to live a long life. And many households are not planning to live as long as they actually will live.

Consider, for instance, recent life expectancy trends. Average life expectancy for a 65-year-old male rose from 84.7 in 1950 to 87.8 in 2010 and average life expectancy for 65-year-old woman rose from 86.6 in 1950 to 89.7 in 2010.

In essence, you’ll need to save enough – if you want the same standard of living in retirement as you had while working – to fund a much longer retirement than you might have anticipated.

One reason why Americans aren’t prepared for funding longer lifespans has to do with the difference between life expectancy at birth and life expectancy at 65, and the point at which people tend to start planning for retirement.

Now, human nature being what it is, many households don’t start to plan for retirement until late in life.

What can you do to prepare for the life you want to live? In my newsletter, we select various types of investments to create income. Why the focus on income you may ask. Simply, the development of income streams leads us to increased financial freedom as the income provides the means to living the life you want. While we invest in world class stocks producing income, we also sell options to create monthly income. When an investor sells an option, they receive the cash immediately in their account.

This is what I call “Mailbox Money for Life.” Get started creating your mailbox money by joning our Monthly Income Newsletter today.

How to Get 50% of Your Stock Purchase in Monthly Income Installments

A covered call trade is a very simple instrument to increase your monthly income. The basic idea is to sell a call option for every 100 shares of stock you own.  By selling the call option, the investor receives a premium which is what our investors call monthly income or monthly dividend payments.  We sell new call options each month to create new income – month after month.  This is in addition to the current dividend paid by stocks on a quarterly basis.

Here is an example of what subscribers to the Get Rich Monthly Income Plan achieved in 2013:

Subscribers purchased Holly Frontier in January 2013 for $46.35 per share. So purchasing 100 share of stock will cost a total of $4,635 plus commission costs.  At this time, HFC was paying a $0.30 per quarter dividend for a dividend yield of 2.59%.  This is a nice yield on a fairly stable stock but it gets even better.  In addition to the $1.20 in quarterly dividends, HFC paid $2.00 more per share in special dividends.  This increases the total dividends to $3.20 per share in 2013.  The addition of special dividends increases the stocks annual dividend yield to 6.9%.  Wow, a 6.9% dividend yield is great in this low yielding stock market!

But it gets even better for Get Rich Monthly Income Plan subscribers.  They sold a call option on each 100 shares of HFC stock they owned each month of 2013.  Based on our results, this created a total of $1,985 for the entire year.  This created an average monthly income of $165.42 by selling the call option which created the covered call trade.  The total premium income of $1,985 is about 40% of the total cost of entering the trade – $4635 at the beginning of the year.  Therefore, investors received nearly half of their initial investment in HFC back during the year through a simple monthly covered call trade.

Now, subscribers can add the three sources of income – quarterly dividend, special dividends and covered call income together to create a Monthly Income Plan.  In total, subscribers received $2,305 in additional income from owning 100 shares of HFC stock in 2013.  This is an average of $192 in additional income each month of 2013. And, the $2305 in income is 50% of the total amount of the initial investment in 100 share of HFC!

Covered Call of Month – October Expiration

For subscribers to the Get Rich Monthly Income Plan, the monthly covered call trades all provided positive income from the selling of call option.  One of the better trades was FedEx (FDR) as the setup is shown below.  The covered call trade used a strike price of 120 as the stock closed well above this price on 10/18.  The trade provided a one month gain of 3.9% for covered call traders.

 

Covered Call on FedEx (FDX)

STRATEGY: Look at the Oct 120 covered call. For each 100 shares of FDX stock you buy, sell one Oct 120 covered call option for a $114.53 (116.83 – 1.30) debit or better. That’s potentially a 3.87% assigned return.

TREND:   The technicals for FDX are bullish with a strong upward trend. The stock has support at $107 and is above resistance. The company reported earnings today, Wednesday, September 18. S&P rates this stock 4 STARS (out of five) – buy.

BLANKET PUT: As a protective option to the covered call, you can buy the Jan 2013 110 Put for $3.20 to limit your stock downside to $110.00 per share. This put is not required for the covered call trade but serves as additional protection for those seeking to limit downside. You should sell the put when you exit the covered call position.

 

RESEARCH NOTES:  S&P maintains buy opinion on shares of Federal Express (FDX). We keep our FY 14 and FY 15 EPS estimates at $7.04 and $8.66. We raise our 12-month target price by $10 to $127, 18X our FY 14 estimate and towards the middle of its 10-year historical range of 9X-34X reported EPS. Q1 EPS of $1.53, vs. $1.45, is $0.02 below our estimate but $0.03 better than the Capital IQ consensus. FDX reaffirms FY 14 guidance of EPS growth of 7%-13%. We expect FDX to benefit from an improving global economy and its ongoing restructuring plan, and anticipate continued investor rotation into logistics stocks on good economic news.

Covered Call Trade of the Month

Investors seeking income in this volatile market can still sell covered call trades for both income and downside protection.  In the past month, the S&P 500 produced a return of 0.73%.  However, subscribers to the Get Rich Monthly Income Plan made off with a 4.7% return by trading a covered call on United Rentals (URI).  Here is the trade posted in July:

Covered Call on United Rentals (URI)

STRATEGY: Look at the August 55 covered call. For each 100 shares of United Rentals (URI) stock you buy, sell one August 55 covered call option for a $52.53 (55.63 – 3.10) debit or better.

Actions: URI is currently trading at $55.01 so the 55 call we sold is ATM.  These shares and call options should be closed on Friday (08/16) for a 4.70% assigned return.

 

Learn more here:

http://getrichinvestments.com/monthly-income-newsletter/

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