yeah..dividends..you have split this one with Barry O.. http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5519.html PS : oh..i'm sorry.....share,not split..
prior to 2007 bank stocks were considered safe dividend payers. how did that work out? if your intention is to hold stocks for dividend income there is a better way. create your own dividend. sell cash secured puts on stable largecap stocks. i recommend you add another level of safety by selling puts on indexes or etfs instead of individual stocks.
After 20 years of devising option strategies that have yielded way more than that, the answer to your question is to bet Zenyatta to show twice.
Where do traders watch for breaking news? I seem to be way behind any moves. Are there any free services that are fast?
Only if you can survive the drawdowns. 41% drawdown in 2008 is way too much for most investors who want long-term growth. Most investors would rather make a small amount and be safe rather than go through the ups and downs of trading that active traders go through. But it definitely sounds pretty interesting, I'll have to look into this as well.
Hmm, I actively trade because I want higher returns and lower drawdowns than the market can provide. The drawdown of this model is more in line with the buy and hold approach, which I consider far riskier. In anycase I think it is an interesting perspective, to focus on the income stream (which steadily increases with this model) and not the account value which fluctuates with the market.