Ever wish that a great growth stock also paid a dividend? Well, if a company isn't forking over the dough, you'll just have to go out and get it yourself. All you have to do is write a covered call.
A covered call is a popular option strategy in which you sell (i.e., write) enough call options to "cover" the shares of a stock that you own. When you do this, you bring in a premium that is yours to keep regardless of whether the stock gets called away from you, and this money is your synthetic dividend.
Source: TheStreet.com
Related Articles:
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Today’s chart highlights “cash cows,” my favorite place to find high-yield dividend stocks. Cash cows represent mature businesses. Because t...
-
The goal: To build a high and steady stream of income. Using the plan, my followers and I are creating a portfolio that can pay us more than...
-
It's time to re-evaluate your holdings and decide just how fortified you really are. The best defense? Stocks with can't-miss busine...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
We wanted to take advantage of the latest addition to the Nasdaq Smart Portfolio’s Crowd Insights page, and find dividend stocks from only t...
-
Stocks that have a strong history of dividend growth have superior fundamentals and form a healthy and safe portfolio as opposed to those th...
0 comments
Post a Comment
Post a Comment