How to Double Dividend Yields with Closed Calls

How to Double Dividend Yields with Closed Calls


Politics to stock market fluctuations change investments that many make and create a higher risk with shares. If you want low risk and high return, then you can use strategies that don’t rely on macroeconomic conditions while doubling your dividend income. Closed calls are one of the special approaches used with dividend growth investing, or DGI. This takes you out of the share price that continues to fluctuate unknowingly in the market while allowing you to develop a sustainable strategy for your investments.


Exercising Your Option to Buy-Write


The ability to buy-write changes your position with premium stocks while offering the minimum to no risk investments. With this strategy, you take an underlying position when buying premiums. This instantly lowers the amount of loss with the share. You then can exercise a closed call with the value and price of the share. For instance, if a share has a specific value, you can buy in at the given price. You can then decide to call the share at a higher price. If this is not higher than the premium, then you can buy-write with the final price. If it is higher, you still retain the premium amount with the share, meaning you lose little to no investment with the strategy while guaranteeing an investment that multiplies your wealth.


Knowing How to Drip         


Drip, also known as the dividend reinvestment plan, allows you to turn the money of dividend growth investing to always work in your favor. In this scenario, you keep share percentages with an investment you have made. When there is a dividend payment, you receive a percentage of the share that you have invested in. Instead of placing your money into a larger investment, you are able to retain and gain value over time. If you make a closed call with the dividends, then you will gain percentages from the share, no matter what the conditions.


Using Closed Calls for Alternative Dividend Income


The ability to triple your income with closed calls move into focus with different approaches to exercising dividends. Many investors will use this strategy to invest in companies that don’t have a high stock percentage. It is expected that the quarterly markets will create fluctuations with shares. You can wait until a higher percentage is available then use a closed call to sell a certain number of your shares. For instance, if you have ten shares, you can sell three, which immediately multiples your income because of the higher number. This offers a higher percentage return, allowing you to build your dividend income. Watching percentages and acting on shares at specific quarters is a simple way to triple the investments you make, even with stocks that are at a lower value.


Increase your income and lower your risk of shares with closed calls. The DGI, or dividend growth investing, offers more opportunities with little to no economic complications. Using specific strategies with closed calls and dividend growth investing is a simple way to build your income while lowering risk with your investments.

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