Dividends4Life: Making Every Stock a Dividend Stock

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Making Every Stock a Dividend Stock

Posted by D4L | Wednesday, July 21, 2010 | | 0 comments »

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

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