Hey traders,
Everybody knows dividend stocks can pay you cash every quarter.
That’s fine… but for me, dividends alone aren’t enough.
I want steady rent money coming in month after month — not just a trickle four times a year.
That’s why I combine dividend stocks with options.
Collecting Rent Two Ways
Here’s the setup:
- I buy strong dividend-paying names — companies with solid businesses that I don’t mind holding. Think steady cash cows, not lottery tickets. Here are three:
- ABBV
- AVGO
- MO
- Then I sell covered calls against those shares.
Now I’m collecting both the quarterly dividend and the upfront cash from the options premium.
It’s like being a landlord who gets paid rent on a house… and then the city comes along and hands me an extra check every quarter just for owning it.
That’s the kind of math I like.
Why It Works
Covered calls on dividend stocks give me a cushion against market noise.
If the stock drifts sideways, I’m still getting paid.
If it goes up, I can roll my calls higher and keep the income flowing.
If it pulls back, the premium I’ve collected helps offset some of that drop — and I’m still earning the dividend.
That’s what I call rent money.
The Big Picture
Most investors are stuck thinking, “I’ll buy this stock and hope it goes higher.”
That’s a slow grind.
When I use dividend stocks as the base and layer options on top, I’ve got multiple streams of income flowing into my account.
It doesn’t matter if the market’s up, down, or chopping sideways.
That’s the power of treating dividend stocks not just as long-term holds, but as income engines.
Trade well,
Jack Carter
P.S. This market is boiling over… Don’t get left behind during this rally! Here’s three breakout setups to tap into!
