Generating regular income from stocks is a popular strategy, especially with the low yields of short-term Treasurys. The easiest way to do this is by buying dividend-yielding stocks, which pay out quarterly. The CNBC Investing Club loves dividend stocks and looks for companies with sustainable earnings and cash flows to support their payouts. It’s important to not just chase high dividend yields, as they may indicate increased risk. Just like bonds, the yield on a stock can fluctuate based on price moves, and troubled companies may keep their dividends high to entice investors. If a company cuts its dividend, it could be a sign to consider selling.
Question No. 2 asks why the CNBC Investing Club team makes buy and sell recommendations during the premarket, even though Jim Cramer advises against trading during that time. The Club issues trade alerts in the premarket to give members a 45-minute head start on trades, aiming for the best prices at the market open. However, trades sent out in the premarket are not completed until 10:15 a.m. ET, and alerts are not issued later than 3:15 p.m. ET to ensure trades are completed before the market closes at 4 p.m. ET. If the Club is restricted from making a trade, such as when Jim Cramer discusses a stock on CNBC, they wait 72 hours after the mention before issuing a trade alert and then 45 minutes before booking the trade.
Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade in his charitable trust’s portfolio. Jim waits 45 minutes after sending a trade alert before executing the trade, and 72 hours after discussing a stock on CNBC before making a trade, to comply with regulations. It’s important to note that the information provided by the CNBC Investing Club is subject to terms and conditions, privacy policy, and disclaimer. There is no fiduciary obligation or duty created by receiving information from the Club, and no specific outcome or profit is guaranteed. Members can submit questions to the Club Mailbag email address to receive general information about investing processes or stocks in the portfolio.
In summary, generating regular income from stocks can be done by investing in dividend-yielding stocks, which provide quarterly payouts. It’s important to assess the company’s balance sheet to ensure the sustainability of their earnings and cash flows. High dividend yields may indicate increased risk, and investors should not solely rely on the dividend yield when making investment decisions. The CNBC Investing Club issues trade alerts in the premarket to give members a head start on trades but completes the trades after the market opens. Members receive trade alerts before Jim Cramer makes a trade, with a 45-minute delay before executing the trade.
