So
called high dividend stocks are usually from companies that have stable cash flows but relatively little or moderate growth potential.
Not exact matches
Carson says that writing
call options on a basket of
stocks with
high -
dividend yields can generate a return of between 10 percent and 15 percent.
During the
stock - market rebound that started in mid-March, Hutchinson's
calls on gold, commodities and
high - yielding
dividend stocks made winners of investors who took his advice.
In short, the strategy I'm talking about involves selling a cash - secured put or a covered
call on a
high - quality
dividend growth
stock when it's trading at a reasonable price (which is typically at or below fair value).
Our
high - yield trading strategy is simple: We sell a cash - secured put or a covered
call on a
high - quality
dividend growth
stock when it appears to be trading at a reasonable price.
If you're just joining us, a «10 % Trade» is a conservative income - oriented trade that involves selling either a covered
call or a cash - secured put on a
high - quality
dividend growth
stock trading at a reasonable price.
In addition to seeking
high - yield
dividend stocks, you can also increase the yield by writing
call options against them each month.
In other words, I will
call it the characteristics of
high dividend stocks.
But, having said that, I must add that good
dividend - paying
stocks, sometimes
called «value»
stocks, get a
higher return and at the same time are less volatile than «growth»
stocks.
The issue with
high dividend stocks is that typically their betas are so low that the volatility from the underlying
call option is not going to buy you much.
Question: Is the sweet spot for covered
call stock selection buying solid balance sheet / good cash flow companies with a history of paying a growing
dividend (and a payout ration say less than 70 %) during times when implied volatility may be
higher (such as now)- so valuations for the
stocks you are writing
calls on are lower - despite being solid companies.
Using the same pre-existing criteria as in your
calls program [e.g.,
high - grade
stocks,
dividend payers, names you're comfortable owning long - term], why not sell puts against your cash position.
Even if the underlying is a no -
dividend - paying
stock, its price is still going to fluctuate, so that there is a
higher chance that the American
call could be exercised above the strike price than the european, since there is simply a
higher chance that S is going to be
higher than X on any given day during the period until expiration than ONLY on the day of expiration.
They were indeed the
highest yield
dividend stocks on the Canadian
stock market, but they were not necessarily what you can
call «best investments».
In short, the strategy I'm talking about involves selling a cash - secured put or a covered
call on a
high - quality
dividend growth
stock when it appears to be trading at a reasonable price (at or below fair value).
Only the most stable, blue - chip,
dividend - paying
stocks should be purchased, and even then you should write in the money
calls with your only goal to generate a return
higher than the borrowing cost.
In short, what I'm talking about is selling a cash - secured put or a covered
call on a
high - quality
dividend growth
stock when it appears to be trading at a reasonable price (at or below fair value).
COVERED
CALL HEDGED BMO EUROPE
HIGH DIVIDEND TO CAD ETF (symbol ZWE on Toronto; www.bmo.com/gam/ca/investor/products/etfs) holds mostly high - quality European sto
HIGH DIVIDEND TO CAD ETF (symbol ZWE on Toronto; www.bmo.com/gam/ca/investor/products/etfs) holds mostly
high - quality European sto
high - quality European
stocks.
They are covered
calls on low payout ratio
stocks identified by Aaron Levitt as good
dividend candidates because of their relatively
high yields and low ratios.
This was actually a «10 % Trade»... as it involved selling a covered
call on a reasonbly - priced,
high - quality
dividend growth
stock — Microsoft.
In short, the strategy I'm talking about — which I
call a «10 % Trade» — involves selling either a covered
call or a cash - secured put on a
high - quality
dividend growth
stock that's trading at a reasonable price.
In short, a «10 % Trade» is a term Phil and I coined for a conservative income - generating technique that involves selling either a covered
call or a put on a
high - quality
dividend growth
stock.
If you're looking for substantially more yield than what's on offer from the broader market (Standard & Poor's 500 -
stock index delivers about 1.9 % at present), you'll want to look at so
called «
high dividend» funds like the HDV.
High dividend stocks, such as utilities, are often
called «bond equivalents», because they typically are purchased for their
dividend, not growth.
In short, we're selling covered
calls and cash - secured puts on
high - quality
dividend growth
stocks when they appear to be trading at or below fair value.
In short, the strategy I'm talking about involves selling a cash - secured put or a covered
call on a
high - quality
dividend growth
stock when it's trading at a reasonable price (which is typically at or below fair value).
Combining the
call premium with the
dividend yield is a good way to substitute
high stock yield for low yield bonds.
«Smart beta» ETFs (also
called «strategic beta») select
stocks based on specific factors like low - volatility, or
high dividends, or value.