My dividend payouts are dwindling, but I’ve found a better investment: Money Talks

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Darnell-Mayberry,Money-Talks

Money Talks columnist Darnell Mayberry explains a shift in his investment strategy from chasing dividends to exploring stock options trading for potentially higher returns.

I’m disappointed. My dividend payouts are dwindling, and I don’t like it.Less than two years ago, I dutifully tracked every penny we earned in dividends. I still do. Only then, I wrote each deposit on a blank sheet of printing paper. I proudly pinned it to our refrigerator. I still have the December 2022 sheet that shows we pulled in $62.60 in dividends from 20 companies that month.

I’ll retain Expand Energy and Starbucks a little longer before saying goodbye. I bought shares in both at dips this year. And I like the trajectory of both companies, Expand because of its recent merger and Starbucks because of its new CEO.inside of my taxable account after receiving an $18.57 dividend from the coffee giant on Aug. 30. I’ve held a position in Starbucks since May 2023, and my stake is currently up 25%.

At the start of the month, for example, I closed my Expand Energy option. I held it for only 30 days. I made a 140% gain, or a $663 profit. On the other hand, I’ve accumulated 42 common shares of the same company using the buy-and-hold strategy. After more than 650 days of holding a position, my unrealized gain is 14%, or $442.I’ll continue dollar-cost averaging into the VTI

 

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