Dow Dividend Stocks - Top 5 Covered Calls

Maybe you want to buy blue chip Dow dividend stocks, but you don’t have much faith in price appreciation, given the market’s performance in 2010 thus far. Selling covered calls often allows you to lock in a much higher yield than the current dividend yield of most dividend paying stocks. We screened for the highest at the money covered call trades for the Dow 30, and came up with yields ranging from 8.54% to 10.17%. Pretty nice yields, especially when you consider that the annual dividend yields for these 5 dividend stocks range from just 2.18% to 3.20%. Given that these option trades are all 6 to 8 month trades, their annualized yields are even higher, as you can see below:... Read more