Microsoft : Cash Secured Puts

I am doing some research about Visa substitute and I found this opportunity , ideal for dividend hunters .

Microsoft is not a bargain because near its fair value, but is a quality stock and a great companies. Fundamentals are really good . This is what Buffet call a GARP (Growth at reasonable price).

Dividend Investors and Dividend Growth Investors could be interested. Dividend: 1,74%, Hist.Dividend Growth: 15 yrs

Dividend growth forecast next 3 yrs: 14%

Earning Growth forecast next 3 yrs : 15% ( Forecast Source: Value Line).

FCF/Dividends = 2,5 (Free Cash Flow cover dividends plentifully). 

There is this opportunity : Put strike 102@0,42  Expiry Feb 15 . Weekly return 0,41% Annual Return on Investment 16,69% .

For aggressive Investor  there is Put strike 105@1,315 Expiry Feb 15  Weekly return 1,2% AROI 50,5%

If assigned, selling  Covered Call to increase your income (Premium + Dividend)
Good Luck .

Share on your social this article!