5 Undervalued Dividend Stocks With Strong Growth and Double Digit Covered Calls

We're half way through 2011, with the Dow up 7.23%, and the S&P (SPY) up 5.01% so far. Not bad, especially when you compare it to the first half of 2010, in which the Dow fell -6.3%, and the S&P was down -7.9%. Of course, the second half of 2011 most likely won't have the benefit of a massive QE2 $ injection, like 2010 had. So, what do you do to lock in some gains on some undervalued dividend paying stocks? Selling covered calls is one proven way to more than double your dividends, and also lower your downside risk. This week, we found 5 Dow dividend stocks with low Price/Earnings Growth ratios, (PEG), and double-digit covered call option yields. Although they don't qualify for our High Dividend Stocks By Sectors Table, a majority of these firms' dividend yields are above the current 2.39% S&P average, and they all have... Read more