Dividend Plays JNK, AOD

I've opened positions on JNK and AOD as dividend plays. AOD's foreign exposure is considerable.

I had sold both earlier in the month upon pauses or signals.

I bought back in to JNK at $39.71 after the price broke above a 12-trading-day sideways trend.

AOD is still showing a psar bear signal, but the sto has kicked from oversold back up into the neutral zone, and I'll accept that for re-entry, at $8.99.

Technically, however, AOD is by far the riskier play. It's a nice big dividend, though, and I've played in and out of it for years.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNK $39.71
AOD $8.99

 Dividends are one of the few areas where I'll play based on news; generally my style is to be a purely technical trader.

In this case, however, Fed Chairman Bernanke's statement on the Hill today tended to push the prospects of higher interest rates further into the future, and therefore holding out the promise that the nascent recovery won't be nipped in the bud.

That's good for the price of all debt, not just the government variety.

JNK's dividend is 10% annually, paid monthly, and the next ex-div is presumed to be April 1 (although it's not yet announced on the website).

AOD's dividend is 16.04% annually, also paid monthly. The next ex-dev is April 22.

Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.


No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.