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Covered Call and Dividends

By Edited Apr 30, 2016 0 0

Using covered call strategy gives you the chance to build your wealth at a steady and safe pace. The thing that is important to know is that it involves research. You must utilize the internet and use an investment tool that will help you cut down the time you need to look for specific types of stocks that you need down to a few seconds. Remember, there are hundreds upon hundreds of thousands of options available in the market at any given time so it would be wise to not look for them one by one. The time you save from looking for the type of stock could very well be used in researching further about the history of the performance of the stock and company itself. These are great benchmarks to allow you to make informed decisions on how to make your investment work for you.


While using covered calls, it would be great to simultaneously look for companies that pays dividend on their stocks. Usually done quarterly, these companies reward their stockholders by paying dividends per stock. The more stocks you own, the bigger the dividend you will get. There are instances that companies increase the dividends being distributed to stockholders if the company performed well or is bullish about the market. In any case, this is a great chance to make money off your stocks.


Doing business in the stock investment industry is not a walk in the park. It is not as easy as buying stocks and waiting for their value to go up. You must first know the basics of the industry before moving on to learning about the best strategies to use to grow your investment. One thing that could help you a lot is using the internet in research. The modern age has given us a near perfect research tool. In a few clicks of the keyboard, you will be able to get information on the company or the history of the performance of the stocks you are looking to purchase. You also are able to make informed decisions on best strategy to use depending on the factors that could affect the price of the stocks. You can also use investment tools such as a call options screener that gives you the chance to filter through all the possibilities of buying stocks by factoring in your preferences. 



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