Using Options To Boost Dividend Income

Last year I decided to add options trading to complement DivGro's strategy of investing in dividend growth stocks.

My options trading activity is focused on generating extra income. I sell covered calls on some of my DivGro positions and I sell put options on stocks I wouldn't mind adding to my DivGro portfolio.

I don't buy options and I consider myself a learner options trader.

In this article, I discuss my approach to using options to boost dividend income. After 15 months of executing this strategy, I'm happy to provide some insights and to share results.

3 Dividend Increases: August 14-18, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

In the past week, only three companies on my watch list announced dividend increases.

DivGro Pulse: August 2017

Welcome to another edition of my monthly pulse article series.

In my pulse articles, I focus on strategy and I monitor the health of DivGro, my portfolio of dividend growth stocks. I update the fair value estimates for every stock I own and use the information to identify undervalued stocks suitable for further investment.

Additionally, I review the recent performance of stocks in my portfolio. If any of them perform poorly, they could be candidates for the chopping block.

To update fair value estimates, I perform a multi-stage Dividend Discount Model analysis, a Gordon Growth Model analysis, and an analysis of dividend safety. My final fair value estimate considers fair value estimates and price targets available elsewhere, such as those from Morningstar, finbox.io, and S&P Capital IQ.

Make Financial Freedom A Strategic Goal

By Charles Fournier

In 1987, I realized nobody else would have the level of interest in our financial well-being that I have. So I decided to manage our financial affairs myself and have been doing so ever since.

Shortly after graduating, my wife and I set Financial Freedom as our primary goal.

We decided to accumulate investments that would generate an income stream and would allow us to maintain our standard of living once we retired.

To help us achieve this goal, we chose to create a well-diversified portfolio of blue chip, dividend-paying companies with a track record of steady dividend increases. Along the way, we added real estate investment properties to reduce our risk.

6 Dividend Increases: August 7-11, 2017

Companies can only raise their dividends regularly if earnings grow sufficiently.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

Recently, six companies on my watch list declared dividend increases.

10 Dividend Growth Stocks For August 2017

As a dividend growth investor, I love David Fish's CCC list of dividend growth stocks trading on U.S exchanges. Updated every month, the CCC list contains more than 800 stocks trading with at least five consecutive years of higher dividend payments. The accompanying spreadsheet provides key statistics of the CCC stocks.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

The latest CCC list (dated 7/31/17) contains 829 stocks. This month I used the dividend stock screener provided by Simply Safe Dividends to select "Very Safe" stocks.

Monthly Review of DivGro: July 2017

Welcome to another monthly review of DivGro, my portfolio of dividend growth stocks! This is monthly review number 55!

In January 2013, I embraced the strategy of DGI (dividend growth investing) after being inspired by many DGI bloggers. My goal is to generate a reliable and growing dividend stream.

Over time, I've managed to grow DivGro's projected annual dividend income to $15,079. If nothing changes and the companies I've invested in continues to pay the dividends they're paying me today, I can expect to receive $1,257 in dividend income (on average) every month in perpetuity!

19 Dividend Increases: July 31-August 4, 2017

Companies that regularly increase dividends show confidence in future earnings growth potential.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, 19 companies on my watch list announced dividend increases, including one of the stocks I own.

Market Implied DGR - A Quick and Dirty Stock Valuation Method

By Catfishwizard

Coming up with a fair value of an individual stock is really hard, and can be as complicated as you want it to be.

I don’t like complicated, so I came up with a metric that I call Market Implied DGR to quickly give me a baseline of fair value from a dividend growth investing perspective.

I’d like to share that metric and my reasoning behind using it with you.

Options Update: July 2017

DivGro is about generating a reliable and growing dividend income stream. I invest mainly in quality dividend growth stocks with a track record of paying and regularly increasing dividends.

Since 2013 when I started DivGro, my portfolio has generated dividend income totaling about $38,000. While that's a decent chunk of change, I realized that I could boost my dividend income through options trading.

In my monthly options update, I report my options trades and provide a running tally of DivGro's options income to date.

In 2017, I'm hoping to earn $8,400 in options income. This month I added secured options income of $1,376, increasing 2017's total to $6,274. (Last month I collected only $469, so I'm very happy with this month's total!)

18 Dividend Increases: July 24-28, 2017 (Part 2: Non-Financials)

Companies can only increase their dividends regularly if earnings grow sufficiently.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

This past week, 18 companies on my watch list declared dividend increases.

18 Dividend Increases: July 24-28, 2017 (Part 1: Financials)

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, 18 companies on my watch list declared dividend increases.

How To Invest $100,000 In Dividend Growth Stocks

By Mike McNeil

I recently decided to quit my job and to build my own business. Having contributed to a defined pension plan, I’m soon going to receive more than $100,000. With the markets trading at all-time highs, the question is: How should I invest the $100,000?

I decided to invest the full amount in dividend growth stocks. This article explains my decision and presents the step-by-step methods I intend to use.

20 Dividend Increases: July 17-21, 2017 (Part 2: Non-Financials)

Companies can only raise their dividends regularly if earnings grow sufficiently.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis.

In the past week, 20 companies on my watch list announced dividend increases, including one of the stocks I own.

20 Dividend Increases: July 17-21, 2017 (Part 1: Financials)

Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

This past week, 20 companies on my watch list announced dividend increases including one of the stocks I hold in my portfolio. 

Recent Sell: Reynolds American

On 19 July 2017, the Winston-Salem-based tobacco company, Reynolds American, Inc (RAI), announced that shareholders approved the acquisition of RAI by British American Tobacco plc (LON:BATS). The transaction is expected to complete on or about 25 July 2017.

The deal comprises a cash payment of $29.44 per RAI share, plus American Depositary Shares (BTI) equal to 0.526 of an ordinary BATS share.

DivGro Pulse: July 2017

Welcome to another edition of my monthly pulse article series.

Pulse articles are strategy focused and I monitor the health of DivGro, my portfolio of dividend growth stocks. I update the fair value estimates of every stock I own and use the information to identify undervalued stocks suitable for further investment.

Additionally, I review the recent performance of stocks in my portfolio to see if any of them are performing poorly. If so, I need to take appropriate action.

LTC: A Monthly Dividend Offering a Growing Payout

By Gaurav Sharma

There's a famous saying in the investment world: The greater the risk, the greater the return.

Greater risk requires more information: Can the business survive? Is the business model easy to understand? Being a higher-risk investment, does it need to be assessed on a more frequent basis?

These are all valid questions when investing.

10 Dividend Increases: July 10-14, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, ten companies on my watch list declared dividend increases, including three of the stocks I own.

Earnings season is kicking into gear and the quiet period for dividend increase announcements seems to be over!

Selling Puts Makes Sense For Dividend Growth Investors

By Amber Tree Leaves

If you're a dividend growth investor, you buy a stock and capture the dividend for reinvestment.

Did you know that selling puts could boost your income?

Yes, there are horror stories about options. But selling puts is useful if done wisely.

Quarterly Review of DivGro, Q2-2017

Welcome to my 18^th quarterly review of DivGro, my portfolio of dividend growth stocks. I adopted the strategy of dividend growth investing (DGI) more than four years ago after being inspired by several do-it-yourself DGI bloggers.

My quarterly reports summarize the actions I've taken during the preceding quarter. Quarterly reports include summaries of dividends received and changes that impact dividend income.

In the second quarter of 2017, I concluded several account consolidation actions, including transferring our IRAs to FolioInvesting where I'm managing them as part of DivGro. I have yet to transfer our taxable account from FolioInvesting to our trust account at Interactive Brokers. Doing so will allow me to write more covered calls.

Investing Lesson: Why Buying Netflix In 2012 Made Me Foolish

By Stockles

It's hard to imagine that it has been five years since I bought my first stock, Netflix (NFLX). When I look back and think about the mistakes, lessons, and experiences over these years, I am quite humbled.

Investing is something special and, somehow, it makes life a bit more profound and enjoyable.

7 Dividend Increases: June 26-July 7, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

In the past two weeks, 7 companies on my watch list declared dividend increases.

10 Dividend Growth Stocks For July 2017

David Fish maintains a list of stocks trading on U.S. exchanges with at least five consecutive years of paying higher dividends. Colloquially called the CCC list and presented in a spreadsheet, the list is a wonderful source for dividend growth investors.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

The latest CCC list (dated 6/30/17) contains 824 stocks. This month, I trimmed the CCC list using screens based on the Value Line Ranking System:

Monthly Review of DivGro: June 2017

Welcome to my monthly review of DivGro, my portfolio of dividend growth stocks!

I love quarter-ending months, as most companies pay dividends in these months. And June certainly did not disappoint, as I set another record for dividend income received in a single month! In fact, this is the first time I've collected more than $2,000 in a single month! No fewer than 31 of my positions paid dividends in June.

As for trading activity, June was a busy month. I opened several new positions and added shares to an existing position. Noteworthy is that I've added four non-dividend paying stocks to DivGro! I have yet to report on these trades and explain why I decided to add these stocks. Look for an upcoming article that explains my thinking.