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Let me hit you with something that might surprise you.
There are only two companies on the planet with a better credit rating than the United States government. Two.
Out of every publicly traded company in the world, only Johnson & Johnson (JNJ) and Microsoft (MSFT) have credit ratings that beat the federal government’s.
Think about that for a second — Wall Street trusts these two companies more than it trusts the U.S. Treasury.
What makes them even more impressive is that they also sit at the top when it comes to dividend strength. Only a handful of tech names rate in the 90s for dividend quality, and that elite group includes companies like Vertiv (VRT) and Lam Research (LRCX).
When a company delivers AAA-level credit and top-tier dividend ratings, that’s the kind of financial consistency you can build an entire strategy around.
I don’t just admire these companies from afar — I own them. MSFT is a core position for me, and I stack JNJ deeper than almost anything else in my portfolio.
When Wall Street shows you which businesses it trusts the most, I pay attention and invest accordingly.
What Makes a Dividend Stock Elite
Before I choose which companies make it into my dividend portfolio, I look at how they’ve treated shareholders over time.
Dividend classifications tell the whole story. When a company has raised its dividend for 24 consecutive years, it becomes an achiever. At 25 years, it reaches aristocrat status. At 50 years, it’s crowned a king.
These are battle-tested businesses that have proven they can reward shareholders through every economic cycle.
Enterprise Products Partners (EPD) is a really good yielder, and American Electric Power (AEP) is my all-time favorite utility. That chart has been a beautiful thing to watch over the years.
How I Use the Wheel to Build This Portfolio
Here’s the strategy: I sell puts on dividend stocks, and if I get assigned, I move them into my dividend portfolio where I sell covered calls against them. If I don’t get assigned, I just keep collecting premium and doing it again.
I run this on Altria Group (MO), McDonald’s (MCD), JNJ, Archer Daniels Midland (ADM), AbbVie (ABBV), Coca-Cola (KO) and Exxon (XOM). It’s income on the way in, income while I hold, and if I ever get called away, I start the process over.
My top three favorites are JNJ, XOM and MCD. Those are the names I stack deepest, and they’re the ones I’m most comfortable selling options on because I genuinely want to own more of them at the right price.
If you want diversified dividend exposure without building it name by name, Schwab U.S. Dividend Equity ETF (SCHD) is one of the most popular options out there. It has a 0.2% expense ratio and gives you broad access to high-quality dividend payers.
But for me? I’d rather own the names outright. I want JNJ and MSFT — the two companies Wall Street trusts more than the government itself.
I want the aristocrats and the kings. And I want to collect premium while I build the position.
That’s how you turn dividend investing into a cash-flowing machine.
Trade well,
Jack Carter
Jack Carter Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This Trading Approach Goes Against Everything You Know
Lean closer…
What you’re about to see goes against everything you’ve been taught about options — flipping traditional wisdom upside down.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
It’s already weathered some of the market’s most volatile storms in the past, and I’m trusting it to take us through these fresh yet chaotic waters.
I can’t make absolute trading guarantees, of course.
But if you’d like to see how I plan to go after the market armed with this unconventional setup — and even tag along if you choose…
