This Dividend Income Strategy Can Generate Insane Cash Flow!

[@AnnaOllsson]

You know Long-term investors know that the market and economy will recover eventually, and are well positioned for the rebound. Personally still going hard on this crazy market and I'm doing just fine. My portfolio currently up 43% right now. I am going to sit back and observe how this all plays out, adding more stocks at a time.

[@JosephineKenney]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

[@FinnBraylon]

On my end I've been in touch with a financial analyst ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.

[@HildaBennet]

Interesting, Mind if I ask you recommend this particular professional you use their service? honestly right now i have quite a lot of marketing problems.

[@FinnBraylon]

Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science

[@crystalcassandra5597]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@AddilynTuffin]

Dividends are only good if the business you’re investing into can make good use of that capital. I'm still at a crossroads deciding if to invest $400k on my stock portfolio. what’s the best way to take advantage of the market?

[@carolynrose1816]

If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.

[@albacus2400BC]

Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@PotBellyPete69]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@albacus2400BC]

Even with dividends, it's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.

[@cloudyblaze7916]

I understand how you feel. It's a little bit difficult to navigate things these days. You don't wanna lose whatever is left. I may suggest that you find a financial advisor who could give you thorough advice on how to go if you want to go the investment route. Also, the fact your business failed doesn't mean you should give up.

[@ericmendels]

That's right. I have tried many failed businesses and it's just a step further. Don't despair. But to add, if you do decide to use a financial advisor, it's best you use someone who understands your special needs and can work with you. I learnt this from experience before finally finding one I can stick with. Now I make six figures from my investments alone, and even more from my businesses.

[@mohican-jx6fx]

Thank you for the advice. When you say financial advisor, are you talking about hedge funds? And how do I get in touch with one?

[@ericmendels]

Hedge funds are good, but because of their scale, they are quite bureaucratic. The majority of independent financial advisors are available online. For example, Sharon Louise Count, with whom I collaborate, has a webpage. There must be more excellent ones. just do your research.

[@michaelelliott9964]

Do covered calls

[@rebeccamoore8366]

I'm not even kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.

[@donalddavis4387]

I cannot focus on the long run when I should be retiring in a few years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?

[@charliehunnam5187]

There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts

[@josephhughes9583]

I completely agree, I have been consistent with my profit regardless of the market conditions, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a popular forum, long story short, its been years now and I've gained over $850k following guidance from my investment adviser.

[@madhav411]

I've been down a ton, I only hold so that I can recoup, I really need help, who is this investment-adviser that guides you

[@josephhughes9583]

If that is the case, it would be an innovative suggestion to look out for Financial Advisors like Olivia Maria Lucas who can help shape up your portfolio. Trying times are ahead, and good personal financial management will be very important to weather the storm.

[@Riggsnic_co]

The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.

[@kevinmarten]

I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.

[@maga_zineng7810]

I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured some money in value stocks and digital assets,i accrued over $80K in dividends last year

[@Mohaimam316]

I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

[@maga_zineng7810]

Credits to 'Natalie Lynn Fisk' she has a web presence, so you can simply

[@Mohaimam316]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@alexsteven.m6414]

Dividends are a great thing, but they’re only really effective for passive income when you either have somewheres over 20 to 25 thousand shares of a high yielding stock. Meaning you likely need to have a few hundred thousand if not more invested in it. Re-investing dividends back into the same stock certainly does snowball with compound interest, but you only really start seeing it after 20 years of never stopping and likely needing to add additional money of your own with it….so it’ll be time consuming and costly. The way I see it if you have a million dollars at some point, that’d be enough to create a portfolio that would pay you between 50 to 70 thousand in dividend income

[@valeriepierre9778]

Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

[@belobelonce35]

@@valeriepierre9778 I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.

[@edelineguillet2121]

@@belobelonce35 Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.

[@michaelgordon3241]

I generate about 30k/year with only 130 to 153k(it fluctuates back and forth)

[@funnyperson4016]

It snowballs like investing. You put DRIP on now and it is a way to automate extra bonus dollar cost averaging which increases your number of shares. If you save $10,000 a year at 7% it takes like 7 years for first $100k, 4 years for next $100k, 3 years for next $100k and so on. Buffett without DRIP has well over 50% yield on cost for Coca Cola and he bought it at a fair price not a great price. You could buy the peak in apple in 2000 or 2007 and with 0.50% dividend still have well over 50% yield on cost because it went up 100x from your cost. Dividends are a side effect of free cashflow growth, so if you optimize for that the dividends will come later. But if you have dividends now you can use It as income for a loan.

[@Raymondjohn2]

Like Warren Buffet said, dividends are only good if the business you're investing into can't make good use of that capital. So, if you're trying to invest in businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they're returning capital to you because they think you can make better use if it than they can. It's not much different from bond investing. The way I see it, if you have a $1 million at some point, that'd be enough to create a portfolio that would pay you between 50k - 70k in dividend income.

[@bob.weaver72]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

[@martingiavarini]

Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.

[@hermanramos7092]

Even if we are not accustomed to such volatile markets with a little carnage, the widespread frenzy and worry are understandable given that the US Stock Market has been on its longest bull run in history. However, there are opportunities everywhere if you know where to look; with the help of an investment advisor whom helped diversify my portfolio I netted over $260k in profits the previous year.

[@bob.weaver72]

@@hermanramos7092 Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@hermanramos7092]

@@bob.weaver72 No doubt, the stock market is definitely the most awkward teenager with the wildest mood swings! I began with a pundit by name "Catherine Morrison Evans’’ Her approach is transparent allowing total ownership and control over my position and fees are very reasonable in comparison with my ROI.

[@RafaelGriggs]

I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[@RafaelGriggs]

@RobertMecham It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.

[@RafaelGriggs]

@RobertMecham How do I connect with her?

[@Tsunaniis-j5l]

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

[@AliceHh_]

Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals

[@Damncars456]

Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

[@Tsunaniis-j5l]

Pls who is this coach that guides you? I’m in dire need of one

[@Damncars456]

My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.

[@Tsunaniis-j5l]

I Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds soon. Thanks

[@rannyorton]

Putting well-earned money into the Financial market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

[@smithlenn]

Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and e-Bay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.

[@Natalieneptune469]

Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, my stagnant reserve of $325K has yielded nearly $1m after subsequent investments so far.

[@rannyorton]

Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.

[@Natalieneptune469]

Cant reveal much info Kate Elizabeth Amdall, is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.

[@rannyorton]

I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

[@Adukwulukman859]

I know is best to invest in safe heaven assets cos profit level usually drops in these times, but I have been reading articles of people that were still able to gross heavy profit up to $580k during this crash...... what is the best strategy at this time

[@talented009]

well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.

[@ThomasHeintz]

True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of $550k...that's like 7times more than I average on my own.

[@DarleneMurphy774]

@@ThomasHeintz that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.

[@ThomasHeintz]

You can do your research and be on the lookout for one with intelligent strategies who'll help your portfolio maintain an unwavering and a progressive growth. Laura Marie Ray is my FA. She has the Flexibility & Expertise to Meet Your Needs. Verify her yourself

[@esther.74]

@@ThomasHeintz I just looked up Laura Marie Ray online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.

[@jamesyoung8234]

I have been doing this since January, and it is a “cash machine” just as you described. I have had my shares called twice prior to the ex-dividend even though the price was below , but very close to, the strike. The dividend pushed the total above above the strike sufficiently that it was called. 3M and TROW. I now pick the strike with the dividend added to the purchase price.

[@AverageJoeInvestor]

Awesome!! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍

[@aikido10]

So as opposed to a strict covered call wheel strategy where you sell puts to eventually get assigned, then sell covered calls, you are using a combination of a dividend capture strategy along with a covered call strategy to increase your margin of safety, capture the dividend if not assigned, and simply rinse and repeat the covered call if not assigned. I love it!

[@craigvanderborgh4324]

Joe did an excellent job on this video and I was really sold on this "dividend capture" idea. So I went and tried it, following all the rules and guidance. Initially it worked. Or it looked like it was going to. The stock that came out of the screen that I used was Morgan Stanley. I placed the 2-lot covered call with the right strike and simultaneously bought 200 shares MS long. I stayed out of the money and got the dividend. All good to that point. THEN, the dividend drop happened Monday so the share price sagged enough to impact the return, as well as not hit the covered call strike. And so now I am stuck in MS for a while. Not complaining. Only want to remind everyone that the "dividend drop", where the stock price falls by an amount greater than or equal to the dividend paid out - is what usually happens. In this sense Joe got lucky on the "dividend capture" trades that he showed us. It still could work out okay on this test of mine. But I would be happier if I had not got stuck in this significant long MS position on margin for more than a few days. Just be aware that this is evidently a far more likely outcome than Joe lets on in the video.

[@kannibalkev]

Yeah, this works great most of the time. I held CEIX Feb-May and sold monthly calls four times before getting called away and was able to clear almost $12K over that period for premium and dividends on 10 contracts less margin and fees.

[@vin.handle]

I've been following a dividend strategy by investing in Vanguard Mutual Funds/ETFs for the last 20 years and re-investing the dividends. Virtually no trading of shares. No muss no fuss. And the total annual dividend income and capital gain distributions increase 2-3 times every 10 years.

[@AverageJoeInvestor]

Yep slow and steady wins the race for sure. EXCELLENT JOB! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@worrior451]

Can you please name the ETF that follows that strategy? I'm in search of this exact thing! Thank you in advance

[@vin.handle]

@@worrior451 In the Vanguard family, I invest in VYM, Vanguard High Dividend Yield Index ETF, which yields 3.26 percent and is broadly diversified. It is among the largest in terms of net assets. Non-Vanguard would include SCHD, Schwab High Dividend Yield Fund which yields 3.8 percent. There are also a few others that are easy to find by Googling.

[@andrewmorales5485]

@@AverageJoeInvestor what if you invest in twelve different quarterly bank stock dividends and you only want to own enough shares to make $400.00 then double down to make $800 that's $38,400.00 a year then double down again just to make $76,800.00 a year quit while you are a head

[@alvinjohnson9531]

I like close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares of the funds and reinvest the dividends. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock.😊

[@murphywags3096]

Given the current state of the economy and stock market, it is reasonable to expect that individuals may experience some difficulty with their investment portfolios. The recent bull run in the US stock market, which was the longest in history, has been followed by a period of economic downturn, resulting in widespread panic and hysteria. As such, it is understandable that individuals may be unfamiliar with navigating such troubled markets. However, there are various resources available to those who know where to look. In my personal experience, I have been able to achieve a net gain of over $two million+ in the past 38 months by employing a reliable and effective investment strategy. This was accomplished by enlisting the services of a professional financial analyst, which proved to be instrumental in avoiding unnecessary fuss and trauma.

[@gennarowyatt1179]

Absolutely right! initially I used to just buy stocks, hold for a few years and then sell for a good price, but when I needed the quick cash I had to switch to trading stocks, so I got in touch with ‘Sharon Kay Hanna’ and she guided me and taught me to trade, so I pretty much make 10X what I usually make in a year when I used to just buy and hold. 💥

[@weaselweasel6480]

Thanks I already searched her on google and I scheduled a meeting with her, I must say her credential are very satisfying.

[@zaalb131]

Your clickbait totally got me! I was worried for you and your 80% return. What do you think is actually more realistic? You got the absolute perfect scenario on BAC, so that was good. But it’s extremely unlikely that would happen consistently. It also seems unlikely you’d be able to repeat with a given amount of capital every 14 days. Maybe best case scenario every 21 days? I’m excited to see more videos on this topic. Maybe you can separately track your trades using this strategy for 3-6 months and see what your return was?

[@AverageJoeInvestor]

Thanks for the feedback Zach. I honestly never try to clickbait but I’ve found there is a very blurry line between intriguing and clickbait. My apologies… Yes, I think it’s a great idea to track these trades for a period of 3-6 months and get an idea of a realistic long-term return. THANK YOU for watching and for leaving your $0.02 in the comments! 👍👍

[@ampiciline]

bro , I loved the section 4:16 , in which you are giving us different scenarios .It was a genius move .This was my first video that I have seen from you yet. I would recommend to continue doing this " scenario's situation " .....it is awesome way to visualize a trade outcome

[@AverageJoeInvestor]

Awesome!! Thank you for the feedback! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@GilbertFleming]

Excellent information as always. One of the things I’ve learned from you, is not to go for a home run every time. Be satisfied with singles and doubles. Singles and doubles on a consistent basis works very well.

[@AverageJoeInvestor]

Absolutely! I love hitting hitting singles and doubles consistently! THANK YOU for watching and for leaving your $0.02 in the comments! =)

[@Stan-Elfrink]

Newbies need to learn the ropes, know how much risk they can handle and diversify their portfolio. Some folks get help from money experts or do their homework before making investment moves. It's all about being smart with your funds.

[@Madison-Huff]

Generally , the stock market provides a platform for buying and selling shares of publicly traded companies, offering potential opportunities for investors to grow their wealth, but it's essential to approach it with knowledge and caution.

[@ThomasChai05]

Investing your money is a good move, especially if you have a dependable plan that can steer you towards profitable days ahead. A supervisor will be the best. The returns are guaranteed .

[@mikegarvey17]

@@ThomasChai05 Great, please who is your advisor?

[@ThomasChai05]

“Camille Alicia Garcia” is the advisor that oversees my portfolio. She's an extremely intelligent person, very thoughtful, cautious, and has an outstanding credentials, it's easy to find her on the web.

[@Grace.milburn]

Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

[@Jim-ku9tr]

Been watching you for a long time , I value your opinion greatly. My portfolio consists of 200 voo 200 vug 150 vgt 4500 SCHD!

[@arianne9093]

Holy smokes! That's amazing, I'm so happy for you

[@john00123]

Well done you !!

[@chen3956]

I aspire to be like you one day

[@jimmyyu2184]

Been doing this for a looooong time (PG, KHC, PFE, F, QQQ, etc... But my plan is to hold long term, not just div capture). When the covered calls threatens to breach the strike price, I roll up and out. Was also doing this with GE, but they decided to reverse-split and now I can't sell calls on them anymore. =(( [Edit: regularly scheduled/declared div price LOWERS the price of the stock. Special divs changes the strike price of the option price. Keep this in mind when you Sell Calls, or Cash Secured Puts. As it may work against CSP, but helps with CC]

[@AverageJoeInvestor]

Quality comment. Yes, the stock price value is reduced BUT that doesn’t necessarily mean the stock will be RED on the day. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@theneverendinghighway]

I'm going to try this. Just bought 100 shares in the aftermarket of Verizon. Going to have to wait until the market opens tomorrow to sell a call. I'm not sure if I missed it in the video if you mentioned to hold the shares through the record date or just the Ex dividend date? Either way I'll be picking a date that is after both dates.

[@MM-lw6ox]

Keep in mind this is very tax inefficient because the divs won't meet qualification guidelines (meaning ordinary income). Also, if you take losses on the stocks at all those won't be able to directly offset divs because they are different categories. So be prepared to pay full income tax on all the div portion no matter what. Outside of that, the key here would be to keep exposure to one company low to prevent a big crater wiping out your efforts

[@thomasd5488]

IRA trading account, preferably a ROTH IRA. Tax inefficiency solved.

[@Jp-ei5og]

I think one has to think of cost vs benefit here. My tax efficient portfolio cruises to an average of about 7-10 % return per year. Not once you maxed out all tax efficient accounts I think it makes sense to adopt an aggressive strategy in non registered account. If I employ this strategy and only make say, 20 % a year, my effective capital gains tax rate is like 16 %. Therefore that 20% nets me 16-17% return after tax. Yes, it's not as tax efficient as other strategies, but if it generates better income and returns then I don't really care

[@masterworm1]

So I have enough to start doing covered calls with SCHD but I still feel like I'm too much of a novice to actually start selling. Joe's video definitely help, but I'm one of those people that wants to know every minute detail before pulling the trigger, so to speak.

[@antimatter2380]

I'm in the same boat. Got ok'd by schwab to start trading options and started with 2 that I already had over 100 shares, schd and qyld. For 2 weeks I kept trying to sell a contract but it would time out. Finally yesterday schd got picked up and now I have to wait almost a month for the strike date. I gave up on qyld and bought Ford. That contract went through damn near immediately. Though the premium is far less then schd, but have strike dates every week. Good luck.

[@steve99912]

Ford should give you better premium over schd and and .60 dividend

[@Jen-ur4ut]

@@antimatter2380 You're not getting filled because of volume & open interest in the particular option you've chosen. This is important because when the market goes against you and you need to roll your option to avoid loss, you will have a difficult time doing that with options that are low in volume/interest. That is referred to as "liquidity." It's not all about premium. You want to be in options that are very liquid or you will get into trouble. That's just the way things work. The market doesn't always go in the direction you expect/hope. Always play defense.

[@Jen-ur4ut]

Paper trade first. TD Ameritrade has an excellent system for this. You can practice all your trades in the real market just not with actual money. You can even back-test for years - meaning you can place theoretical trades in prior years and see how they would have played out.

[@antimatter2380]

@Jen-ur4ut I appreciate the advice since I'm more than just a novice. He'll I dont even really understand the ins and outs of rolling it over. That's why I'm only doing covered and can live with them getting called.

[@boomerqwerty3]

@AverageJoeInvestor, thanks for the great video! I am interested in this method, and will be trying it out shortly. Is there any reason why one couldn't lock in the cover call option contract on or immediately after the ex-dividend date in order to avoid the potential for assignment and therefore loss of dividend?

[@stevejohnson2108]

I am currently living off dividends. I have not done any option trading yet but I am learning and will continue learning until I am comfortable with option trading. I thing a discipline approach as you highlighted can enhance any portfolio and increase the cash flow. If I can increase my cash flow by just an additional 3% a year then I am golden since my current dividend cash flow is 4.4% and live extremely comfortable off that.

[@negroalfonso]

Loved the part of how you picked from the Fidelity screener. So nice. Learning here, I am still feeling anxious when I am in the money… but enjoying the journey

[@AverageJoeInvestor]

Awesome!! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@AnnaOllsson]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

[@thomasd5488]

When using a dividend capture strategy, I have found that if you buy the shares one week before the ex-div date, you often avoid paying the share price increase leading up to the ex-div date. I will often sell an at the money put strike that is actually slightly in the money, with an expiration date that is on the Friday, one week before the ex-div date. You get optimum premium, and if the put expires in the money, you get the shares "put' in your account one week before the ex-div date. If the put is going to expire out of the money, you can buy to close the put for a net profit, and buy the shares on the Friday, expiration day. This allows you to participate in capital gains caused by the share price increase, leading up to the ex-div date. You can then sell a covered call one strike price above your purchase price, or one strike above the current share price, (whichever is greater), to collect another premium. If the covered call expires in the money, your shares are 'called' away and you collect the strike price for your shares, and you have participated in even more capital gains, while having also collected that premium. If the covered call expires out of the money, you can either sell another covered call, or you can sell the shares, and move on to the next dividend stock that has an ex-div date coming up in two or three weeks. The Wheel strategy combined with the dividend capture strategy was my bread and butter, and T-bone steak, in 2021, during the bull market. Using the same capital, I earned 12 dividends, by rotating to a different dividend stock each month, and collected around 48 premiums from selling cash secured puts, or covered calls, AND earned some capital gains. In 2021, my portfolio grew 45% using this strategy. Of course, some people who yolo on some of the select, big tech growth stocks earned more than that. But did they grow their whole portfolio by that much? Is yolo'ing big tech growth stocks systematic, repeatable and consistent? I don't think so. If you are very good at picking stocks that double or more, then go do that, with your whole portfolio. I loved the story of the Tortoise and the Hare, when I was a kid. I prefer to BE the Tortoise. Systematic, repeatable and consistent, multiple small gains, that work in all market conditions.

[@1969TxCowboy1]

Thomas....making those SRC/Heitkoetter returns!

[@thomasd5488]

@@1969TxCowboy1 Yup, Heitkoetter gets the credit.

[@mediacreationsusa]

Been starting to do this too - but the danger, as mentioned is bag holding... but that divvy helps with that for sure - I like blue chips that don't move that much, so if it does fall, you can make it up in the next few CC contracts. how about a video that shows the least expensive stocks to sell CC's on with the biggest premiums... I like Monthly divs myself... but it doesn't matter if you are just playing the Ex DIV game.

[@AverageJoeInvestor]

Awesome and thanks for the feedback!! 👍😎

[@geraldwilson727]

I love using this strategy I did this same thing on nvidia and made 1171 even though I was early assigned didn't miss the 4 dollar total dividend I lost because the option premium was insane at 10.15 per share

[@minorleagueroadtrip6224]

Thanks for this video. I recently dove into the world of option trading. I'm currently selling covered calls on MPW, FSK, ABR and TSLY. I haven't been assigned yet, but I got close with TSLY. I ended up buying my call back, which I see now as a mistake. I effectively gave back all that premium, plus a few more bucks. At least I kept the shares and dividend. Next time, I'll just wait it out and sell if I have to.

[@AnyangU]

Definitely good content. Thanks. Enjoy your family vacation!

[@AverageJoeInvestor]

You bet!! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@gimincorp]

Super informative; thank you for the filter suggestion - this makes your video timeless!

[@bryanharrell4059]

Are all of these gains taxed as short term capital gains? If so, there'd be a need to set aside 10% , 12%, 22%, 24%, 32%, 35%, or 37% of the profits, depending on AGI income for the year to pay the tax on the income.

[@Jen-ur4ut]

Yes.

[@janshuster1426]

Best in tax sheltered account.

[@rigidbeast6447]

Roth Much ?

[@bryanharrell4059]

@@rigidbeast6447 yep, should've occurred to me to do this in a ROTH. I just have no experience doing it and I consider a ROTH sacred and don't like the idea of that much risk and potentially stunting any growth in it. The balance right now isn't that much so I don't really have enough head room in it to work the options strategy. I'm up for ideas though, it sounds like a good system if someone is good at it with a bit of luck thrown in.

[@AverageJoeInvestor]

Yes it’s short-term taxable BUT not as big of a deal if you’re consistently making money UNLESS you are in a really high tax bracket in which case BEST to do it in a retirement account. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@thomassanfrancisco5850]

Good strategy but in projecting the 80% on BAC you are mistakenly factoring in a dividend with each trade but this stock pays quarterly dividend inflating the projected return in your example.

[@AverageJoeInvestor]

Yes this is true. BAC would be quarterly BUT you could consistently use a new stock and get similar returns. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@esmd8500]

Great video! Does anyone know how to do this when using interactive broker's website? I can't get an account in fidelity and they require login in order to search stocks like you did.

[@esmd8500]

Figured out how to do it, tried it with the PNC stock over the weekend. Results so far: I started out with buying 100 stocks, the call option for them only expires next week, so far I gained the dividend and call option premium. I then bought 400 more shares of PNC but accidentally made the covered call expire on the 14th, which means they expired before I got he dividend but I still earned some money from them. Question: If you already intend on buying the dividend stocks why not also try to purchase them with a put option and earn the premium on that as well?

[@Willymayshayes444]

Do you have a core holding that you put your profits in or do you sit on cash and reload?

[@AverageJoeInvestor]

I currently sit in CASH (SPAXX) since I get more than sufficient yield there. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@drewthorne1019]

I think this may be your best video yet

[@AverageJoeInvestor]

Awesome!! THANK YOU for that feedback!! 👍😎

[@michaelbell8618]

Great video!! Is there a website that discusses the top covered call Div stocks?

[@nathanmcdairmant9318]

Question are you buy the shares through options?

[@poseidon8680]

Could you give us an idea on how would this strategy work in case of an unexpected crash or meltdown?

[@ellengraff9328]

Hello from Wisconsin. Hows the air quality down there.

[@AverageJoeInvestor]

Ugh, pretty terrible. We were at the Cubs Game and it wasn’t bad but in the city it was TERRIBLE. Couldn’t see anything from the Willis Tower…THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@GaHullbillyRanch]

Off topic here but still a options trading question. If I have a cash account on Robinhood will I be flagged as PDTrader if I sell 5 weekly cash secured puts?

[@janshuster1426]

No

[@AverageJoeInvestor]

No, the Day Trade flags would come from moving INTO and OUT of positions in the same day. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@thomasburney1418]

Great strategy tip Joe! I executed it on VZ and netted 3.5% on the July 14 $37 call. That's and 80% annual yield. :)

[@AverageJoeInvestor]

AWESOME THOMAS! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@NathanielBradley-e2y]

Thanks Joe. I executed an AGNC trade, the way you laid out and netted slightly above 4%. Thank you for keeping us informed with great ideas and foresight!! Best wishes to you and your family.

[@AverageJoeInvestor]

AWESOME!! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@fatalbert2784]

This was an excellent video! Thank you. Perhaps you might consider an ongoing series like this, a buy-write/dividend capture “Play of the Week”

[@AverageJoeInvestor]

Ohh, very interesting idea. I’ll take that away. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@fatalbert2784]

@@AverageJoeInvestor I did buy 100 shares of USB and sold the July 7 $33 covered call. So far, so good! USB is up slightly today, even though the shares are trading ex-dividend. Thanks again! 🙏

[@terrylockhrt8352]

i'd be interested in this idea too. with my crazy work schedule just a couple of ideas to pick from would save me tons of time researching yet keep me in the game.

[@zaalb131]

I’m deciding between these three as my end of year goal. All of them require about the same money, but I can only achieve one: 1. Hit $200k stocks (currently $150k) 2. Buy a new primary property (I currently have a rental and a primary and my current primary will be a great rental when we move) 3. Pay off all non real estate debt ($35k student loans, $4k on car). I look forward to your non financial advice!

[@Dutty_Boy]

Best to get rid of debt then get that new property. You can always use the cash flow to buy more stocks later.

[@TheVonWeasel]

Ditto what @wilxav1996 said. Debt first, then property, and last stocks

[@Chris-ew9mh]

Yes, paying down debt is always a sure thing unless you have such a low interest rate that you can make more safely elsewhere by leaving it in play.

[@Dutty_Boy]

@@Chris-ew9mh valid point

[@zaalb131]

I like the ideas. My student debt is grad loans so it’s at 6.5%. Car is pretty low at 3.5%. I’m leaning towards debt pay down first as well. Kind of surprised you guys went real estate over more stocks for option 2 considering the channel were on

[@wernerschonenberger3038]

Interesting ... any long track results?

[@AverageJoeInvestor]

I’m tracking it now in my Discord/Patreon community now and will share long-term results when I have them. 👍😎 THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@stevenalvis137]

I swear watching this channel I’m either going to be free or die trying

[@howtoinvest4yourself241]

Are you doing these options in a Roth IRA or traditional IRA or just general stock holding?

[@howtoinvest4yourself241]

So, If I am understanding this correctly If I buy a stock that I would not mind holding "forever" like KO and I have 100 shares of that stock, and I buy it before the EXDate (Say 5+days before EXday) then I turn around and sell a covered call on that 1 contract. I would be able to make money from the premium and I would be able to keep the premium no matter what happens to the stock price or the Strike price. For example. if the stock price drop to some number wellll below the initial purchase price and well below the strike price I would keep the premium and my stocks as the end of the EXP of the contract... the only time I would lose the stocks and be forced to sell the stocks would be "only if the Options Buyer executed their option to buy at the strike price. in that case, I would collect the premium and also the difference in the Purchase price of the stock and the sale of the stock at the strike price and "if" there was a Dividend paid. Am I wrong? Am I missing something? is there any way I would be forced to sell the Dividends or lose them or do I lose the premium?

[@PhantomFUZZ01]

What do you do in situations where the window is larger than a week or two between Ex-Div date and pay date? I'm looking at VZW and CMCSA but you have to hold them for 2 weeks + makes me nervous doing the covered call that far out and maybe missing the date? I get you still make profit, would you suggest waiting to set the covered call closer to Pay out date?

[@irinab7524]

You can just sell it couple days after ex dividend date or check out the recording date, it’s usually next day after ex dividend day. But generally the price get down on ex dividend date and not always recover that fast….that’s why probably the other strategy with options

[@AverageJoeInvestor]

Yeah for me I would just wait until I’m in the same week or 2-3 days out. But you could hold longer if you wanted to. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@tonycrabtree3416]

You should do a tiktok video, this sounds exactly like tiktok financial advice!

[@ZachDoty]

Tax inefficiency, though? If you end up racking up short term capital gains?

[@Rich_Man101]

Yes, options are best done in retirement accounts to avoid the additional taxes. If you do options in a taxable account you will have short term capital gains taxes to pay which will definitely eat into your profit margin.

[@Jen-ur4ut]

@@Rich_Man101 On the other hand, free money is free money.

[@janshuster1426]

Use a ROTH IRA

[@staroyuncu4117]

I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest

[@Keto_Mike]

Holy crap your videos literally follow what I'm thinking then when I look at KZbin you make a video of the strategy I was thinking about. 😂 Insaine.

[@AverageJoeInvestor]

Haha, that’s AWESOME! 👍😎 THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@Keto_Mike]

@@AverageJoeInvestor no problem, we must be on the same wavelength 😂

[@CarlDi3trich]

And here I was about to ask about covered calls at just above the strike price. Mind reading. :)

[@AverageJoeInvestor]

LOL, THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@JesseGray-u9c]

Have you ever thought about selling an ITM call option a day or two before ex-dividend?

[@sportspokerguy3506]

Most dividend stocks attract investors that automatically invest the dividends back into the company - there are a lot of instances where a stock will gap UP on the ex-div date

[@vatreni8088]

Did this on VZ today. Bought 100 Shares. Then Sell the Open on the options contract at strike of 38.50. Think I got it right. Let's see.

[@motivationmastery684]

In theory this is good but I noticed more often than not, stock price will fall after ex-div date

[@kcirdorb9591]

Thanks Joe...I'm learning a lot. A separate question . Why would a person sell a covered call at or below the current price of the stock? I guess if you want to get rid of the shares you can collect a higher premium on the way out of the shares. If you wrote a strike below the current price wouldn't the shares get called away immediately? Maybe you could do a segment on this topic ...on selling covered calls at the price or below the current price.

[@Rob-db4cc]

read about extrinsic value. If the extrinsic value is greater than the dividend, then being called away is much lower. I did an ITM call on Ford last dividend because I didn't trust the stock. Give you a bit of downside protection, check net debit when you put on the trade. Got .15 dividend and about .18 in premium. It will remove any price appreciation from the equation.

[@jeremymalli]

Why so long prior to ex-dividend date? I've done a very similar strategy where ex-divi was the following day with no major issues.

[@edatugcekaramanli]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio

[@mikeconnell698]

Do you know of any ETF/CEFs that employ this strategy?

[@AverageJoeInvestor]

GREAT QUESTION! I am not aware of any but that would be an interesting strategy. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@RobCantonJr]

I do this on a smaller scale by opening a call credit spread further out of the money instead of the covered call

[@jhmrem]

What's the tax treatment of the espresso income strategy?

[@vatreni8088]

Looks like the USB Scenario got covered and you missed out of the dividend. Is that right?

[@electronsmove]

Be aware that some dividends incur short term capitol gains tax if they are not qualified dividends. Covered calls are a good way to pull a "dividend" out of any stock with some volatility.

[@chrisf1176]

been doing this for a while now. i usually sell ITM, but it is a great strategy

[@chrisf1176]

i actually took the USB trade last thursday. $31.5 strike and July 7 expiration.

[@philelmo]

wouldn't ITM have a higher chance of getting called away before ex-div date?

[@AverageJoeInvestor]

AWESOME! Great job! And to answer the other question just above me, YES, you increase your chances of having shares called away BUT you also have some downside insurance from the strike price UP TO the current market price. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@MS-yx3dr]

You should cover more on the risk, if the stock gaps down on bad news. I guess there is no free lunch on Wall Street.

[@jessicaknoll4700]

I'm celebrating a $423,000 dividend stock portfolio today. I started this stock trading journey with $180,000. have invested much time & money, and i'm also with Lanngel Mark, the right investment Adviser who handles my portfolio and executes my trades, now I have steady dividend income & time for my family ❤💯✅

[@tommorgan4735]

out of curiosity I googled the name you mentioned Lanngel Mark, and left a well organized mail after going through his webPage & reviews

[@chen3956]

Wow! My husband & I works with Lanngel Mark too. He also handle his portfolio !

[@john00123]

Lanngel mark has been the key factor in the buildup of my dividend growth portfolio. I am learning more and pushing more to buy assets, with one goal of steady dividend income

[@antoniorao5345]

Where do you get your strike price information?

[@AverageJoeInvestor]

I get it through the Fidelity brokerage platform. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@debbieshapiro9779]

​@@AverageJoeInvestorI use Schwab. Do you have any familiarity with their interface for options? Looks like some great filtering options with Fidelity but prefer to stay with Schwab.

[@BarryFence]

That sounds like an awesome strategy. I'm definitely going to use this!

[@AverageJoeInvestor]

Awesome! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@andrewmorales5485]

@@AverageJoeInvestor question if someone wanted to make $25k a month how monthly stocks dividends companies would that person need to invest in.

[@rysenight3958]

I would really love to learn this ?

[@glaucodefendi9021]

You should explain about broker fee and tax

[@rockystaatz521]

All good potential. I try not to use them anymore except to buy something I own paying with potential growth and then buy before date and sell when the math is right for loss or after paid dividends if it’s above buy price. You are trying to be complicated but I have used it for profit

[@jamesec1949]

Correct me if I’m wrong. If you just held the stock the value minus what you paid would have returned $387.

[@AmeliaMalina-wv1zx]

I am very interested in this way, would you like to add my contact information to communicate more?

[@AverageJoeInvestor]

You’re not wrong in this scenario except it would be a paper gain. Not a problem with that BUT it speaks to what are your goals. IF your focus is long-term growth then maybe not as efficient BUT if trying to maximize cash flow it is. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@jamesec1949]

@@AverageJoeInvestor Got it. Thx.

[@bullionjohn6054]

This is a very creative strategy. Nice explanation. Could get dicey if the price drops bad, but I think the probability of success is pretty high.

[@AverageJoeInvestor]

This is true, which is why you have to START WITH Dividend Stocks you are OK with owning Long-Term if necessary. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@cliffdariff74]

Thought this was ex div strategy.... but you added covered calls.

[@frosted1030]

I think covered calls are much more risky than you let on. Investment advisors have been clear that you can and probably will lose your money doing this. You also don't discuss ALL the fees involved. Even if you make money, there's capital gains tax.

[@AverageJoeInvestor]

Yes you CAN LOSE MONEY IF you do 1 of 2 things: 1. Sell Call Options with a strike price BELOW your cost basis and you get assigned. 2. The price of the stock drops and you choose to sell the stock and realize the loss. Yes, IF you sell covered calls OUTSIDE of a retirement there are taxes but if you are consistently making 2-4% yield who cares. You are making money. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@frosted1030]

@@AverageJoeInvestor Since you can't control if a stock goes up or down, nor can you predict it, you will end up selling at a loss more than you gain. This is how statistics work. Further, if you sell, OR buy, you pay fees. Those fees depend on many different factors (again, out of your control, and unpredictable). The odds of you gambeling and coming out ahead are lowered even further by capital gains taxes.

[@BrotherK-ex2co]

Buy and hold can be much riskier than the covered call strategy.

[@frosted1030]

@@BrotherK-ex2co Who lied that to you? Did you consult a wealth management specialist or is this just youtube guesswork?

[@BrotherK-ex2co]

@@frosted1030 it's been proven. Did you miss that on your 1st day of school?

[@RobertJenkins835]

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Maria Reyes.

[@katelynncox]

I'm surprised you know her. I've been making a lot of profits investing with her for a few months now.

[@sonyaturner5200]

Maria Reyes changed my life because of the high profits I got from investing with her.

[@PatrickVelazco]

You invest with Maria Reyes too? Wow that woman has been a blessing to me and my family.

[@JeanelleMulligan]

I'm new at this, please how can I reach her?

[@RobertJenkins835]

she often interacts on Telegrams, using the user below.

[@spiderpup3660]

Is this a retirement account ? If not you are going to own a lot of Taxes at year end----- all short term holdings .

[@mikevans9783]

Is there a charge when another person exercises the option on your shares. You do not seem to take that into account.

[@jasonschmeltz8819]

There is not

[@pgbollwerk]

Why did it say you bought on margin, when it looks like you paid cash for the 300 BAC shares? Am I missing something? Maybe not that relevant.... just curious. Maybe it's just a bookkeeping quirk for the company you use. I'm no expert, but I know enough to be dangerous. =) I may have to test the waters.

[@DianasReviews]

This is very interesting!

[@darwintortoza169]

Welcome to Chicago!

[@AverageJoeInvestor]

THANK YOU!! 👍😎

[@stevenporter9114]

And if you want to up your game up even higher start by selling puts on the stock first.

[@resortingtogolf]

You should also look at selling a put option to enter the position and add more premium on the way in. Matt Peterson talks about this strategy as well.

[@AverageJoeInvestor]

Yes you can do this BUT you lose some control of your basis and the ability to exit the stock when you want to IF you get deep assignment on the CSP. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@Ghosted760]

Well done...

[@kaangame6636]

Nice video

[@FabianRush]

Hi Joe, could you please make a video that fully explains how you're using SPAXX to generate interest on your uninvested cash? I'm using E-Trade and I'm curious if your SPAXX method works there too.

[@Rich_Man101]

I have accounts at both Fidelity and E-trade. SPAXX is just Fidelity's cash sweep account. Unfortunately E-trade doesn't have anything similar. One of the benefits of Fidelity is they will pay you for your idle cash. Current 7 day yield is 4.75%. Unfortunately E-trade doesn't. A definite negative to having an E-trade account. Only reason I have an account at E-trade over Fidelity where all my other accounts are at is because it's an account type not offered at Fidelity.

[@AverageJoeInvestor]

Same issue with Schwab. A GREAT reason to go with Fidelity as you can write Cash-Secured Puts AND collect interest. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@FabianRush]

Thank you both for your responses. That's very important to know if someone's curious about what brokerage to use.

[@zshn]

You can't annualize a quarterly event / trade opportunity. That's miscalculating Annualized ROI.

[@igrpetlnk7588]

great content . please, speak a little bit slowly. thanks again !!

[@LFlores_]

You could have made even more, if instead of buying the stock you had sold At-The-Money puts. Since the premium would become a discount.

[@rllarson70]

Interesting, but defiantly only do with stocks you want to own.

[@AverageJoeInvestor]

Touché. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@siy4545]

is this not just a weird wheel strategy? couldnt you just start this by selling a put right at the money?

[@wehttamsivad]

sell a put the week before

[@AverageJoeInvestor]

Yea you can certainly do this BUT you run the risk of having the price sink and then it’s more difficult to write close to the money covered calls once you get assigned. That’s what I’ve experienced thus far. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎