27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
3M Company (NYSE:MMM) has officially reached a settlement with the legal representatives appointed by the court to handle the Combat Arms Earplug lawsuits against the company and Aearo Technologies. According to the terms of the agreement, 3M will make a total payment of $6.0 billion from 2023 to 2029, comprised of $5 billion in cash and $1 billion in company stock.
With the buzz around 3M, some investors may be eyeing potential gains from the company’s dividends. As of now, 3M offers an annual dividend yield of 5.76%, which is a quarterly dividend amount of $1.50 a share ($6.00 a year).
To figure out how to earn $500 monthly from 3M dividends, we start with a yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by 3M’s $6.00 dividend: $6,000 / 6 = 1000 shares
So, an investor would need to own approximately $104,120 worth of 3M, or 1,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / 6 = 200 shares, or $20,824 to generate a monthly dividend income of $100.
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Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
MMM Price Action: Shares of 3M gained 5.2% to close at $104.12 on Monday.
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Photo: Shutterstock
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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