While most investors buy income stocks for their dividends, a
number of issues from recent Income Investor columns have gone on
to strong gains.
CBOE Holdings (
) has been on a tear since clearing a 41.10 buy point from a
three-weeks-tight add-on pattern June 7. It ramped up as much as
24%, which puts it in profit-taking zone. In most cases,
investors should take at least partial profits once they amount
to 20% or more.
On Tuesday, the derivatives exchange operator lifted its
quarterly dividend by 20% to 18 cents a share. The stock has a
1.4% yield. CBOE was featured
. The company, which has a hit product in its VIX futures,
reports results before Friday's open.
VF Corp. (
) hasn't made as dramatic of a move as CBOE, but it has still
gained more than 7% since being profiled in the
June 14 edition
. The stock is near a record high, but is extended from a second
rebound off its 10-week line. It has yet to form another base
after breaking out from a cup in April.
The clothing maker pays a dividend of $3.48 a share annually.
It has a yield of about 1.8%.
Last month, VFC delivered a 14% increase in its Q2 earnings
and raised its full-year profit outlook.
Home Depot (
) has seen some volatility since being featured in the
June 11 column
. The world's biggest home improvement retailer is tied to the
housing market, which recently saw a dip in pending sales due
partly to higher mortgage rates.
The stock has bounced back after falling 11% from its May 22
peak. Home Depot has also formed a cup-with-handle base with an
81.33 buy point. But Home Depot's pattern is a third-stage
Home Depot pays a dividend of $1.56 a share annually, which
works out to a yield of about 2%.