Southern Company (SO) Current Dividend: 5% Share Price Cost Basis: $43.00 Shares Purchased: 1,000 ($43,000 principal) Annual Dividends: $2,150 (.05 X $43,000) Three-Year-Rule Scenario: If SO appreciates to $49.50 within (3) months, you should sell and take the $6,450 (3 X 2,150) gain, which represents 3 years of dividends.
