Dogs of the Dow: Dividends vs. Options

We checked the top 5 current Dogs of the Dow (the current Dow component stocks with the highest dividend yields) to see how their dividends stack up vs. their covered calls and cash secured puts. Selling covered calls can be an effective way to protect your portfolio in a down market. The current Dow Dogs are (click to enlarge images): As is often the case, telecoms have the highest dividend yields in the group, with AT&T (T) and Verizon (VZ) topping the list. These two dividend paying stocks are in the telecoms section of our High Dividend Stocks By Sector Tables. Two healthcare dividend stocks and tech giant Intel (INTC) round out the list. Verizon has the most aggressive dividend payout ratio, and Intel the most conservative. Performance-wise, only Pfizer (PFE) has gained much year-to-date, while Intel and Merck (MRK) have lagged the others over the past year, which, in... Read more