The bank failures’ impact on the market is hitting value dividend stocks as well this week. While some of our stocks have fared OK, most of them are down again today with the broader market sell-off.

We don’t have any positions to manage, but we do have two open call positions expiring and one assignment to take.

 

Camping World (CWH): 20.36

ACTION: No action. Allow CWH 17 Mar call to expire worthless.

 

Dow Inc. (DOW): 50.24

ACTION: No action. Allow DOW 17 Mar 59 call to expire worthless.

 

Philip Morris (PM): 94.14

Philip Morris has been a defensive dividend play. In the past, when the market has traded higher, the stock would lag, and when the market sold off, PM would hold steady and sometimes even trade higher. Of course, we are in a bear market, so even PM is selling off this week.

Our PM 17 Mar 100 put is in the money, and we will take assignment this weekend. The stock goes ex-dividend on Wednesday, March 14, so we were going to purchase shares anyway before then to earn the 1.27 quarterly dividend. We will look to sell a covered call on Wednesday or Thursday.

We have been here before with PM. Shares traded mostly in the 92 to 105 range in 2022, and we’ve been able to move in and out of the stock as needed to collect income.

ACTION: No action. We will keep the premium we earned from our PM 17 Mar 100 put and take assignment of the stock over the weekend to earn the dividend next week.

NEW MEMBERS: If you do not own PM, buy shares at market no later than Tuesday, March 21, to earn the 1.27 dividend.

 

We will provide a more detailed review of some of our current positions next week. If the market trades higher earlier in the week, we will send out an alert on several new covered call recommendations. The Fed meets next week to decide if or how much to hike rates, so most new trade positions will come after Wednesday afternoon’s announcement.

Have a good weekend.