RE: BMODividendGuy...do you sell month out... two strikes out of the money Covered Calls for BMO...? great way to make an additional monthly income and you still can collect on the Dividends this way too!
Helps pay for the wait!
Not selling any of my BANKS period!
And if GoldSite thinks that you can't make money enough to beat taxes and inflation off these types of investments... sorry he is wrong!
Off my three Banks counting the Dividends earned and Cover Calls sold I make roughly 3233.00 a month. That could change with the Dividend and Call option values... but that's what I am making as of today out to JAN 2009 when the options expire...and have since I bought BMO, CM and more recently BCS.
And that does look after my taxes on my investments and I am sure inflation too!
And I have losses too from other stocks to carry forward this year to reduce my taxes further. And you can deduct interest costs from margin or other sources used to buy stock and your transaction costs to buy and sell even on the options.
In Canada you don't get nailed that bad on investments really!