Kohl's (KSS - option chain) shares are rising today after the company reported Q4 earnings this morning, posting a profit of $493 million, or $1.66 per share, on revenue of $6.04 billion. Both numbers matched analysts' estimates. KSS forecast Q1 earnings of 68 to 73 cents per share on revenue of $4.20 to $4.28 billion. Analysts have forecast earnings of 72 cents per share on revenue of $4.19 billion. KSS also initiated a quarterly dividend of 25 cents per share, the first in the company's history, which is always something that investors love to see. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on KSS.

Williams Companies (WMB - option chain) shares are soaring today to a new two-year high after the company announced fiscal-Q4 earnings this morning, posting an adjusted profit of 44 cents per share, topping analysts' forecast of 27 cents per share. WMB also announced plans to split into two standalone companies. WMB will spin off its exploration and production business in the third quarter. Finally, WMB said it will lift its quarterly dividend to 20 cents per share from 12.5 cents per share beginning in June. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WMB.

Reynolds American (RAI - option chain) shares are rising today after the company announced several pieces of news this morning. RAI said its board has approved a 2-for-1 stock split as well as a 10% hike in its quarterly dividend to 49 cents per share from 45 cents per share on a split-adjusted basis. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on RAI.

RAI opened this morning at $60.63. So far today the stock has hit a low of $60.60 and a high of $61.82. As of 11:24, RAI is trading at $61.73 up 1.76 (2.9%), which is a huge move for this conservative, income stock. The chart for RAI looks bullish and S&P gives RAI a positive 4 STARS (out of 5) buy ranking.

Verizon (VZ - option chain) stock is trading lower today after VZ shares were downgraded at Bernstein today to Underperform from Market Perform. In a note to investors, a Bernstein analyst wrote, "At the core of our concern for Verizon is the fact that after it begins to make distributions to Vodafone (VOD), we project that it will generate only just enough cash to cover its current dividend payment, leaving a razor-thin margin for error and sharply limited ability to commit to future dividend growth."

Dividend investors hate to hear that kind of worries regarding their distributions and have been driving VZ's price lower today in response. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on VZ.

Oil major BP (BP) could restore its dividend as soon as the first quarter of 2011, according to new CEO Bob Dudley. Speaking on BBC television today, Dudley explained, "The board will get together and talk before the end of the year about restoring a dividend in some form in the first quarter."

The new chief executive went on to clarify, "It's obviously for the board to decide," but added, "I believe we will get there." Dudley also said that he's comfortable with the amount of funds set aside to cover BP's liabilities stemming from the catastrophic Gulf of Mexico spill. "Generally, we're in, I think, good shape," he stated.

I'm underwater on my Microsoft (MSFT) position. I made some initial purchases earlier in the year at higher prices. Yesterday, I decided to buy more to improve my cost basis. It still isn't that great; my average cost per share is over $29. But I may buy more, and I may sell some covered calls against the position to further improve the basis (assuming I can find appropriate premiums).

Why did I buy more of the software behemoth? Was it because of the new blockbuster Xbox 360 game Halo: Reach? Not a chance. Even though the title will sell a ton of copies, it doesn't constitute a trade-worthy catalyst. It just won't have enough of a financial effect.