Dividend Alert

Vale S.A. (VALE):  14.20

There has been a lot of confusion around the second VALE ex-dividend date of 2022. First it was announced as 7/28 and then 8/1 and now tomorrow (8/12). It is confirmed to be tomorrow (8/12).

We added VALE, a steel production company, last March as an inflation beneficiary stock. It was trading around $18 and we’ve generated about $3.50 of return (premiums and dividend) since we started. Vale stock price is off its high of around $21 by 35%, so we know that it is one of our more volatile positions to trade.

We don’t know how much longer we will be in this position, but for now, let’s hold on to it and earn the $0.69 dividend tomorrow (payable 9/12).

ACTION: No Action. If you own VALE stock and sold the $14.50 call, hold the position. We expect VALE to trade lower tomorrow without the dividend so it’s likely our 12 Aug 14.50 call will expire worthless. If the stock price runs higher, we can roll our call out to avoid assignment at this time.

New Members: If you want to earn and collect the $0.69 dividend from Vale, you can buy the stock at market (around $14.13).