MPW Dividend Report

Hi Readers,

I would like to welcome a few new readers that signed up this week.

I know I haven’t been writing much but I’m still very much into the stock market and monitoring things everyday.

For the new readers, I was writing everyday for a lot of years. However, I don’t like the way the market is moving under the current administration so I haven’t been doing my normal trading volume. But if anyone has a question about any options trading strategy send me an email. Hopefully the market starts to move in a little more predictable way and I’ll start making moves again. For now I’m just investing in dividend stocks along with some other long term holdings.

The stock I’m reporting on today is Medical Properties Trust (MPW). This company owns thousands of hospitals and other medical properties around the world. It’s a real estate company so they lease the properties. Recently they had a problem with one of their big leases and they received a downgrade from an investment firm and the stock came down a few dollars. Reports I read say the company is still in good shape and will be making enough money to continue paying the same dividend. When investing in dividend stocks the biggest fear is a stock reducing their dividend. I still have confidence MPW will not reduce their dividend. I’m in my dividend stocks long term so a drop in the stock 10 or 20 percent does not worry me much. As long as they pay their dividend. The stock price should recover in time.

As most of you know I have 2 accounts. One is a trading account which is a margin account. The other is a non-margin account for holding stocks longer term. In my margin account I’m holding 1000 shares of MPW and try to sell an option once in a while to pay the minimal margin interest along with collecting the dividend. I also own 1400 shares of MPW in my non-margin account which is only for collecting the dividend.

Between the two accounts I own 2400 shares. April 13th was the Pay Date for the dividend. I received  a total of 82.29 shares of MPW as a dividend. I received the shares because I’m on the stock reinvestment plan. I now own a total of 2482.29 shares. The next time the company pays a dividend I’ll receive my dividend based on my 2482.29 shares and my shares will continue to grow. My dividend percent is 10.2% based on the price I paid for the shares. On Friday the stock closed at $8.28. If you buy this stock at this price, and the dividend stays the same, you would receive a dividend of 14%. With the stock price this low I might buy more shares this week.

This stock seems to have hit support around the $8 mark. If it looks like it might hang around this area I might sell a 10 contract Call option against my 1000 shares in my margin account. If I do, I will buy shares with the premium I receive with the sale of the Call.

If anyone has a question on how dividend investing works send me an email.

 

Successful trading,

Steve

The Options Coach