option
An option offers its holder the right to buy or sell a particular security at a specific price within a specific time frame. Two kind of options are put options and call options.
One of our top U.S. dividend stocks, Procter & Gamble knows which products to keep and which to sell off for greater long-term profits.
WEIGHT WATCHERS INTERNATIONAL $26.61 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 57.2 million; Market cap: $1.5 billion; No dividends paid) declined steadily from over $80 a share in 2012 to a recent low of just under $7. However, the shares jumped on October 19, 2015, when Oprah Winfrey said she had purchased 10% of the company.
Oprah bought 6.4 million shares for $6.79 each and has an option to purchase 3.5 million more at $6.97. She will also join the company’s board of directors.
Founded in 1961, Weight Watchers offers weightloss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and online. It gets 80% of its revenue through meeting fees and 20% from product sales.
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Oprah bought 6.4 million shares for $6.79 each and has an option to purchase 3.5 million more at $6.97. She will also join the company’s board of directors.
Founded in 1961, Weight Watchers offers weightloss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and online. It gets 80% of its revenue through meeting fees and 20% from product sales.
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Weight Watchers International, $16.14, symbol WTW on New York (Shares outstanding: 57.2 million; Market cap: $880.1 million; www.weightwatchers.com), offers weight-loss services in 23 countries. The company promotes a program of lifestyle changes through over 36,000 weekly member meetings and online. It gets 80% of its revenue by collecting meeting fees and 20% from product sales. Weight Watchers has been in business for over 54 years. Jean Nidetch, a homemaker living in Queens, New York, founded the company in 1961. Nidetch struggled to lose weight, so she started a support group with friends and neighbours....
PROCTER & GAMBLE CO. $77 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $207.9 billion; Price-to-sales ratio: 2.8; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pg.com) makes products in five main categories: fabric and home care items, such as Tide laundry detergent (29% of sales, 24% of earnings); baby goods, including Pampers diapers (27%, 26%); beauty products, like Olay cosmetics (24%, 23%); grooming items, including Gillette razors (10%, 16%); and health care products, such as Crest toothpaste (10%, 11%). Wal-Mart supplies 14% of the company’s sales. Latest sale set to deliver big gains In the past few years, Procter has sold many of its less profitable brands, including its recent deal to transfer 43 beauty product lines, including Wella, Clairol, Max Factor and CoverGirl, to Coty Inc. (New York symbol COTY)....
CANADIAN PACIFIC RAILWAY LTD., $202.17, Toronto symbol CP, reported lower freight volumes in the latest quarter, mainly due to falling prices for oil and other commodities, but the railway still reported better-than-expected results. In the three months ended September 30, 2015, CP earned $427 million, up 6.8% from $400 million a year earlier. Per-share profits jumped 16.5%, to $2.69 from $2.31, on fewer shares outstanding. These results exclude unusual items, such as gains on asset sales. On that basis, the latest earnings beat the consensus estimate of $2.67. Revenue gained 2.3%, to $1.71 billion from $1.67 billion, also beating the consensus forecast of $1.69 billion....
You are never too old to have a long term investing strategy
Canadian annuities offer a predictable source of income—but we advise against buying them.
BMO U.S. High Dividend Covered Call ETF, $18.41, symbol ZWH on Toronto (Units outstanding: 14.7 million; Market cap: $270.6 million; www.etfs.bmo.com), uses covered calls to try to boost its cash flow so it can provide higher distributions to investors.
Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
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Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
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PROCTER & GAMBLE CO. $77 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $207.9 billion; Price-to-sales ratio: 2.8; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pg.com) makes products in five main categories: fabric and home care items, such as Tide laundry detergent (29% of sales, 24% of earnings); baby goods, including Pampers diapers (27%, 26%); beauty products, like Olay cosmetics (24%, 23%); grooming items, including Gillette razors (10%, 16%); and health care products, such as Crest toothpaste (10%, 11%). Wal-Mart supplies 14% of the company’s sales.
Latest sale set to deliver big gains
In the past few years, Procter has sold many of its less profitable brands, including its recent deal to transfer 43 beauty product lines, including Wella, Clairol, Max Factor and CoverGirl, to Coty Inc. (New York symbol COTY).
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Latest sale set to deliver big gains
In the past few years, Procter has sold many of its less profitable brands, including its recent deal to transfer 43 beauty product lines, including Wella, Clairol, Max Factor and CoverGirl, to Coty Inc. (New York symbol COTY).
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Our retirement planning advice is based on a mix of setting realistic financial goals and a little common sense
There are two practical solutions to the stressful problem of not having enough money saved for retirement—and neither involves banking on a big stock windfall.
These days, more investors suffer from what you might call “pre-retirement financial stress syndrome.” That’s the malady that strikes when it dawns on you that you don’t have enough money saved to be able to earn the retirement income stream you were banking on.
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