Blue chip stocks in the natural resources sector, like BP (NYSE: BP) and Rio Tinto (NYSE: RIO), are ideal for writing covered call options.
That's when the owner of the stock sells options, but not the obligation, to buy it at a higher price in the future. In the natural resources sector, BHP Billiton (NYSE: BHP) is a solid choice for writing covered call options for a variety of factors.
There are many ways to profit from writing covered call options, but there are three primary methods:
Best Consumer Stocks For 2015: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Dividends4Life]
McDonald�� Corporation (MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada and Latin America. Sept. 18, the company increased its quarterly dividend 5% to $0.81 per share. The dividend is payable Dec. 16, 2013, to shareholders of record at the close of business on Dec. 2, 2013. The yield based on the new payout is 3.3%.
- [By Ben Levisohn]
Abbvie (ABBV)
Ameren Corp. (AEE)
Arthur J. Gallagher (AJG)
E.I. DuPont de Nemours & Co. (DD)
ENSCO (ESV)
Enterprise Products Partners LP (EPD)
General Mills (GIS)
H&R Block (HRB)
Hancock Holding (HBHC)
Kraft Foods Group (KRFT)
Lorillard (LO)
Magellan Midstream Partners LP (MMP)
MarkWest Energy Partners L P (MWE)
McDonald’s (MCD)
Microchip Technology (MCHP)
NextEra Energy (NEE)
Regency Centers (REG)
TELUS Corp. (TU)
West Corp. (WSTC)
Williams Companies (WMB)
Hot Blue Chip Companies For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By M. Joy, Hayes]
Shareholders, keep out
A few years ago, when the SEC considered introducing a new regulation requiring public companies to include some shareholder-nominated candidates for the board of directors on their proxy statements, Chevron (NYSE: CVX ) objected. - [By Travis Hoium]
Dow components ExxonMobil (NYSE: XOM ) and Chevron (NYSE: CVX ) have actually fallen slightly on oil's new high because they may not see a big benefit from higher prices. Oil is becoming more expensive to extract, and demand isn't rising rapidly, which would lead to higher profits from refining, retail, and extraction. Instead, demand is flat or declining slightly in the developed world, and there are big worries that supply disruptions will hit the Middle East as violence spreads there.
- [By David Smith]
It's no secret that oil and gas behemoth Chevron (NYSE: CVX ) operates in a vast array of locations. Along with being a major player in the deepwater Gulf of Mexico, it's also the top dog in Australia's burgeoning LNG world. It's active in Sub-Saharan Africa and is the only major company working upstream in Saudi Arabia. It's also busy across Southeast Asia, and is trying to plumb hydrocarbons from Poland's shale formations.
Hot Blue Chip Companies For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Jon C. Ogg]
Philip Morris International Inc. (NYSE: PM) has experienced more than impressive growth in both its share price and its profits in the past four years. Lately its gains have petered out. The problem is that much of that growth has come from a few countries in Asia, and if one analyst report is accurate, there will be little to no growth from those areas ahead. Nomura Securities is downgrading Philip Morris to a Reduce rating from Neutral, but for all practical purposes it is a Sell rating. The firm’s $76 price target suggests downside of more than $10 ahead.
- [By Dan Caplinger]
Philip Morris International (NYSE: PM ) will release its quarterly report on Thursday, and projections suggest that it will manage to deliver decent results for investors. But shareholders don't seem convinced about Philip Morris earnings, as they've recently sent the stock down substantially from its May highs.
- [By Ben Levisohn]
Shares of Lorillard have jumped 4.6% to $51.29 at 1:32 p.m. today, while Reynolds American has gained 2.5% to $52.12 and British American Tobacco has dropped 1.1% to $107.62. Altria Group (MO), meanwhile, has risen 0.4% to $36.43 and Philip Morris International (PM) has declined 0.9% to $80.21.
Hot Blue Chip Companies For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Rick Aristotle Munarriz]
Scott Eells/Bloomberg via Getty Images In retrospect, Green Mountain Coffee Roasters may have picked a lousy day to host its first ever investor summit. The company behind the Keurig single-cup coffee brewer chose Sept. 10 to host investors, analysts and journalists as it talks up its java-rich past and unveils what's brewing in the future. That also happens to be the widely sourced date of Apple's (AAPL) new iPhone media event. We know where headlines will be made. Apple shares peaked above $700 the morning that the iPhone 5 came out. Fans and investors alike have been hungry for innovation out of Apple as profit margins have contracted and the tech giant has surrendered market share in the smartphone space. However, don't dismiss Green Mountain's potential to make things interesting. There are some neat things in the works at the Vermont-based company that created a new market with its single-serve brewers just as Apple did with the iPhone and iPad. Brewing Liquid Gold Green Mountain (GMCR) is no stranger to the beverage market outside of the premium blasts of coffee that consumers associate with the Keurig brand. The company has sold K-Cup portion packs to make tea, cocoa and even apple cider for years. However, Green Mountain aimed to expand its market a couple of years ago when it introduced a Brew Over Ice line of K-Cups offering iced teas, chilled coffees and even pre-sweetened fruit drinks. It's a simple process. Consumers are asked to fill up a 16-ounce glass with ice to cool down the beverage that is brewed hot just like its traditional drinks. Some refreshment seekers may not be so keen on warming something up just to cool it down, so Green Mountain is working on new possibilities. "We see opportunity in juices, carbonated beverages, sports drinks and enhanced waters," the company said during last month's quarterly earnings call. Introducing carbonation would be a game changer and not just because it would get in the way of the budding em
- [By Rick Munarriz]
Apple (NASDAQ: AAPL ) fans shouldn't get too excited here. It's not the iconic iTunes Music Store that's raking in the big digital bucks. Streaming through Pandora (NYSE: P ) and smaller sites is starting to generate material revenue for the record labels.
Hot Blue Chip Companies For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By WALLSTCHEATSHEET]
IBM is a technology company that provides valuable and essential products and services to consumers and companies around the world. The stock has been on a strong run extending back several years but has been in consolidation as of late. Over the last four quarters, earnings have been increasing while revenue figures have been decreasing, overall producing mixed feelings among investors. Relative to its peers and sector, IBM has been a poor year-to-date performer. WAIT AND SEE what IBM does in coming quarters.
- [By Laura Brodbeck]
Next week investors will be waiting for several key earnings reports including Coca-Cola Company (NYSE: KO), General Electric Company (NYSE: GE), International Business Machines (NYSE: IBM), Johnson & Johnson (NYSE: JNJ) and Google (NASDAQ: GOOG)
- [By Rex Crum]
H-P�� results also come following mixed results from IBM Corp. (IBM) �and Cisco Systems Inc. (CSCO) , and amid growing concerns about the turnaround efforts launched by Chief Executive Meg Whitman. �
- [By Daniel Sparks]
To illustrate, Daniel compares Apple (NASDAQ: AAPL ) , Google (NASDAQ: GOOG ) , Baidu (NASDAQ: BIDU ) , IBM (NYSE: IBM ) , and Nokia (NYSE: NOK ) .
Hot Blue Chip Companies For 2014: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Diane Alter]
Athletic gear maker Nike Inc. (NYSE: NKE) steps into the place of Alcoa, a Dow component for 54 years. Payments company Visa Inc. (NYSE: V) will unseat HP, which joined the blue-chip benchmark in 1997. And Goldman Sachs Group Inc. (NYSE: GS) replaces BofA, which joined the index five years ago.
- [By Jason Moser]
MasterCard's share of electronic payments
This represents the share of the 15% of transactions that are already in electronic form. On the one hand, according to the Nilson Report competitor Visa (NYSE: V ) holds about 63% share versus MasterCard's 31%. But when we consider that MasterCard's network has the capacity to handle more than 160 million transactions per hour, and only runs at about 80% capacity per day, there is obviously room to grow, and that is what management is doing. CFO Martina Hund-Mejean put it bluntly: "Look, we are looking at ourselves as a growth company, and obviously all of our investments that we are doing are really pointed to make sure that the top line continues to grow."�
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