Blue chip stocks in the natural resources sector, like BP (NYSE: BP) and Rio Tinto (NYSE: RIO), are ideal for writing covered call options.
That's when the owner of the stock sells options, but not the obligation, to buy it at a higher price in the future. In the natural resources sector, BHP Billiton (NYSE: BHP) is a solid choice for writing covered call options for a variety of factors.
There are many ways to profit from writing covered call options, but there are three primary methods:
Top 5 Managed Healthcare Stocks To Invest In 2015: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Dan Burrows]
Rival Colgate-Palmolive (CL) has different concerns, namely sluggishness in emerging markets where it enjoys commanding market share and derives more than half its revenue.
- [By Dan Caplinger]
Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.
Top 5 Blue Chip Companies To Own In Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Steve Heller]
The hope is that consumers will justify the premium over tablets in exchange for the added productivity. The 13-inch Apple (NASDAQ: AAPL ) MacBook Air powered by Intel Haswell is advertised to achieve a staggering 12-hour battery life and weighs less than 3 pounds. But because it starts at $1,099, the everyday PC user who mostly surfs the Web and reads emails may have a hard time seeing the value, especially considering a $499 iPad with a Retina display is rated for 10-hour battery life. To put the price of a 10-inch iPad in perspective, the MacBook Air's Haswell processor alone costs $342 for the base model and $454 for the upgraded version.
- [By Evan Niu, CFA]
Niu: I know the Denver CPUs are coming out pretty soon, too. Those look really exciting to me, because that's really NVIDIA's big first step into real custom cores, really taken to the next level, to compete better with Qualcomm� (NASDAQ: QCOM ) and Apple� (NASDAQ: AAPL ) and all the other chip players. Could you tell us a little bit more about Denver?
Top 5 Blue Chip Companies To Own In Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Dan Dzombak]
However, the tobacco industry has been a great hunting ground for investors. While no tobacco companies pay as high a dividend as Vector Group, long-term investors would do well to look at Altria in the U.S. or Phillip Morris International (NYSE: PM ) . Both were part of the original Phillip Morris conglomerate that split up around 2008 by spinning off Kraft and Phillip Morris International.� Both businesses are leaders in their respective markets -- Altria in the U.S. and Phillip Morris the world, excluding China and the U.S -- and have exceptionally high-returning businesses. This is in part due to both having one of the top brands in the world with Marlboro. For dividend investors, the key part is that both have long-term histories of steadily increasing their dividends. If I had to choose just one, while Altria has a higher yield than Phillip Morris (4.9% vs. 3.9%), I would go with Phillip Morris. The company has better growth prospects and a lower payout ratio, and the business is far more diversified in terms of legal risk, whereas Altria could be hurt by any laws or rulings that go against tobacco companies in the U.S.
- [By Alexandra Scaggs]
Then the bank appeared to backpedal a bit in its note yesterday, cutting back on its recommended holdings in Ultimate Software Group(ULTI) and Mastercard(MA) and adding to its recommended positions in Anadarko Petroleum Corp.(APC), an energy stock, and Philip Morris International Inc.(PM), a consumer-staples stock. Morgan Stanley strategist Adam Parker �and his�team found that times when value stocks outperform growth stocks by such a wide margin “are typically followed by periods where value outperforms.”
- [By Maxx Chatsko]
However, you would be hard-pressed to find any connection between falling smoking prevalence and share performance at Reynolds American (NYSE: RAI ) , Lorriland (NYSE: LO ) , Phillip Morris (NYSE: PM ) , and Altria (NYSE: MO ) . These companies are some of the best performers in the past decade. In fact, Altria is the best-performing stock of the last half-century!
- [By Fede Zaldua]
Imperial trades cheaply and pays a great, sustainable and for-ever-growing 4.5% cash dividend yield. The company's 2014 10.4 times P/E multiple represents a 40% discount to what most European consumer staples sell for. Besides, the owner of brands such as Davidoff and Gauloises, trades at a much more conservative level than its direct tobacco peers. Philip Morris International (PM) and British American Tobacco (BTI) sell for 2014 15 and 14.2 times earnings, respectively.
Top 5 Blue Chip Companies To Own In Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Jim Jubak]
Energy stocks, well, I don�� see oil moving up a whole lot. It doesn�� look like it is going to be necessarily a bad time for energy stocks because oil is going to be dropping, but I don�� see a whole lot of energy in the sector. But the real problem, I think, is consumer stocks. These are kind of like the safe stocks that people go to when they want to be in the market but they��e a little worried about the market. You know the stocks I mean, McDonald�� (MCD), Coca-Cola (KO), Pepsi (PEP), the companies that have theoretically steadily growing earnings. The problem is we��e had a lot of bad news from those stocks in the fourth quarter and in, sort of, month-to-month figures from companies like McDonald�� for January and February that we��e not seeing much in the way of growth. Two problems there, one of which is sort of general, which is that we��e not seeing a whole lot of increases in growth, sort of acceleration in the growth rate in emerging markets. In fact, we have seen a deceleration, and that has had an effect on companies like McDonald��. The other is that we��e battling some individual, or sector trends, so that McDonald��, for example, is fighting against a lot more competition, in the sense that, for some percentage of the market, they are really not very exciting anymore as destination restaurants. For Coke and Pepsi, we��e dealing with the fact that cola drinks and sweetened fizzy drinks, in general, are sort of losing market share, again, losing some pizzazz. If you look at all of these sectors and say, ��kay, so what�� going to drive the market higher from here,��a lot of the sectors that were doing the job in January, and the first half of February, seem to have run out of gas, and that may leave us with very little, other than technology, and it�� hard to see technology being sufficient in and of itself to drive the market from here and that is what I �� look for in the week ahead, what�� our leaders
- [By WALLSTCHEATSHEET]
McDonald�� is a well-recognized company that fulfills cravings and demand for quick and delicious food choices that many consumers across the globe enjoy. The company’s�Holdings Co. Japan Ltd. released its full-year profit outlook on Thursday, and according to Bloomberg, said that it is cutting its profit forecast by more than half. The stock has been trading sideways in the last couple of years, but is currently surging higher. Over the last four-quarters, earnings and revenues have been rising. However, investors have had conflicting feelings about recent earnings announcements. Relative to its peers and sector, McDonald�� has been a weak year-to-date performer. WAIT AND SEE what McDonald�� does this quarter.
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