1989
Well-Known Member
Only 63,920 after the tax man comes calling. Probably only 56,400 next year (just guessing dividends rate will go to 25%).
$70 a share...sorry ,but im excited
- Thread starter probellringer
- Start date
Only 63,920 after the tax man comes calling. Probably only 56,400 next year (just guessing dividends rate will go to 25%).
TechGrrl
Space Cadet
Even $56,400 is more than the median household income of all but 13 states (2006-2008 averaged); still not a bad job for sitting back and watching the bucks ka-ching into your checking account. If the dividend tax rate doesn't change, you make more than the median household income of all but 5 states. This data is from the census bureau.
1989
Well-Known Member
You are right, but not enough to quit my job, is all i'm saying. There are better dividend rates out there to park $2.7 million. AT&T would gross you 175,500 a year. If you sold some upside calls you could get another 2% a month or 54,000. 500,000-650,000 a year is much better than parking that money.
Just Numbers
Retired
Just got off the market and it is now down $4.62 from the close of your nice day! All I'm saying is why not make your money work for you. Forget the financial planner...just start putting some money into a Scottrade Account. Again if you sold 1000 shares at the end of your nice day and bought them back right now you would be $4620 richer and still have 1000 shares.
Just Numbers
Retired
Upstate, I know where you are coming from because I was in the same boat with brokers and mine charged me a lot more per trade. I just got so fed up that I basically told him to go screw himself with his transactions fees. I went to Scottrade and am very happy with them. They did the paperwork to transfer and paid any fees to do so. Now I can trade with just a few clicks on the computer. I can buy a 1000 shares and then sell them in the same day and my total cost would be a little more than $14.00! If the stock only went up 2 cents I more than covered the cost of the transaction. As to the dividend my transaction cost on 1000 shares to get the dividend would be roughly $56.00 for the entire year while what I received in dividends would be $1880.00! The rest of the year I can use my money to make money and it doesn't matter whether I buy UPS, FEDEX, COKE, BEST BUY, CSX, ect. Everyone seems to get excited when UPS hit $70...do they remember when in Dec '04 it was in the mid $80's. This was years before the economy tanked. The phrase "don't worry...it will come back" was heard all the time...well, I am still waiting almost 6 years later!!! Don't misunderstand me as you can make money with your money...you and also lose it. Make your gains outnumber your losses.
Just Numbers
Retired
So when do you think we will see $70 again?
1989
Well-Known Member
If you plan on holding a stock anyway, you can't get burned on covered calls. (I was holding 300 shares in a useless Mellon account) You are just capping your gains. Selling naked puts, however, can give you a beat down.
Looks like I will go long again at a cost of $65.18 with the stock much lower and miss out on the divy. I lose out on the $141 in dividends. But By not holding at $69.50 I essentially got a $695 tax free dividend.
On Friday the June $67.30 calls are $1.40...$65 calls $2.34...$62.50 calls $3.65. The $65 calls are 125% of the yearly dividend. And you would only have to hold it for 43 days instead of 365 days. You would earn $5.44 a day. Of course as expiration comes nearer the prices will reflect the stock price.
cachsux
Wah
$63 now. Guess this thread is dead for another few years
Much like your employment resume.
stevetheupsguy
sʇǝʌǝʇɥǝndsƃnʎ
Ha Ha, good one cach. BTW, as I was reading your post, your sons girlfriend (my 7 year old) glanced over and read the words BIG DING DONG above your avatar. I quickly explained that your avatar is a "giant" snack cake.
whiskey
Well-Known Member
Today UPS stock closed at just above $61. December of 1999 it went out to the public at $60 a share. Since 1999, it has never split. Whatever happened to that horse we used to own? The one that beat that phillie with the broken leg? Something about anabolic steroids the 15th of every month?
1989
Well-Known Member
UPS went public at $50. But was at $25 the day before the IPO. UPS's price did not increase every quarter before the IPO. Let's say for argument purposes UPS increased consistantly by .75 every quarter (3 bux a year) Over 42 quarters the price would be $56.50 or 126% over those 10 years. At 61.17 it is up 145% since pre-IPO.
whiskey
Well-Known Member
I was born at night, but it wasn't last night. Morgan Stanley Dean Witter was the lead underwriter with an assist from Goldman Sachs. The Offer Pricing date was 11-9-1999. The date it went public was 11-10-1999.The Offer price to Morgan Stanley Dean Witter was $50.00. The morning of the IPO, at 9:30AM, UPS stock opened at $65.00 a share. The closing price the same day was $67.38.
1989
Well-Known Member
Which employees were excluded from buying after 1996?
1989
Well-Known Member
That looks like $50 to me. Todays close is still a 145% increase over the November 9, 1999 price.
Plus $12-$14 in dividends
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fxdwg
Long Time Member
You also have to look at the price of each share, the consistent increase in dividends and the overall security of UPS over the years.
Why buy FDX for $90 & get $0.14 in dividends each quarter when you can buy UPS for $60 and get $0.47.
The risk is that when you absolutely have to sell it'll be down, but it will not be down so much that the dividends weren't lucrative.
You need quite a few shares for this.
If you're a conservative long, there is (probably) not many safer investments.
Why buy FDX for $90 & get $0.14 in dividends each quarter when you can buy UPS for $60 and get $0.47.
The risk is that when you absolutely have to sell it'll be down, but it will not be down so much that the dividends weren't lucrative.
You need quite a few shares for this.
If you're a conservative long, there is (probably) not many safer investments.
Me, as I recall. Still part time in 1996-1999. We never got the option until it went public. Then we got the "you need to get in the stock program. It will be over $100 a share soon. "
Robert
