Seeking Alpha

Option Selling And Dividend Growth Investing: July Edition

Includes: HD, JNJ, UNH
by: Option Generator

Covered-call writing and cash-secured put selling can be used in conjunction with dividend growth investing and that's why you can generate even more income using both strategies together.

In this very first edition, I'm going to present three dividend stocks in depth and possible option selling trades you may want to move forward with.

By lowering our long-term cost basis, the rate of success will increase substantially.

As many of know I'm a big proponent of conservative option selling strategies, known as covered-call writing and selling cash-secured puts on a monthly basis. Here on SA, dividend growth investing is by far the most attractive topic that determines the best opportunities which can help investors live off their dividends. But what would happen if you sell covered calls on stocks you have been owning for quite some time now? Or what about selling cash-secured puts to purchase a stock at discount in lieu of setting an ordinary limit order. In this new monthly series, I'm going to present you the best three names that conservative long-term option sellers should heavily consider in the upcoming month.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.