Dividend Portfolio – Part 2 

Last month I started my Dividend Portfolio using options. Since then I sold puts on VZ, VFC, TGT and GM with annualised yields between 4.6 % (VFC) and 7.9 % (GM). This yield is higher, if my strike price is nearer to the current stock price. All these options expire in January 2018.

Today I sold puts on PSX relatively close to the money (stock at 77, strike 75) and with a much shorter duration (October 2016). The annualised yield is much higher (16 %), but I can only do this for stocks I would buy for the current price (because there is only little distance between the current stock price and the strike price of the option). Currently I do not find a lot of stocks that I consider attractive priced.

Before today’s transaction my annualised yield of the whole portfolio was 5,6 % and I needed 430k to achieve my goal of 2k a month with this yield. After today’s transaction my annualised yield jumped to 7 % and my needed investment down to 340k. What a difference!

Of course, if I can not reach the same yield in October, these numbers will go back to the previous level.

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