I'd say it's no stretch to call
one of the more reliable dividend-growth and
stocks on the market. The large telecom has continually
paid dividends for 100 years and has consistently raised that
dividend annually for the past 28 years.
Dividend growth is unlikely to abate because
AT&T dominates its market
. It operates the largest 4G network - covering 275 million
users. It also offers the largest international and domestic
WI-FI coverage of any U.S. wireless carrier.
This enormous telecom generates roughly $130 billion in
revenue annually. Its size confers a degree of safety and also an
economy of scale that can produce tremendous amounts of cash.
Of course, AT&T also returns big cash to its shareholders
through its dividend. This year, AT&T investors will receive
a generous $1.84 dividend per share, which produces a 5.30%
A 5.30% yield is exceptional in this market, particularly
considering the S&P 500 yields around 2% and
10-year Treasury notes yield around 2.7%. When AT&T's size
and safety are factored in, the yield becomes even more
impressive because AT&T is such a low-risk income
Even though it's a safe,
, AT&T still offers exceptional return potential.
In the past two years, the blue-chip telecom has generated a
40% total return.
But what if I told you that you could double your
income and yield on AT&T by two to three times or more each
year? And what if I told you that you could collect this extra
income every few months in addition to your regular quarterly
I'm referring to an
option strategy known as a covered call
, which allows you to collect extra income from a conservative
dividend stock like AT&T.
When I mention "options" to many investors, they instantly
think of risky investments that are only for speculators.
Nothing could be further from the truth.
An option is simply a contract to buy or sell shares of a
stock at an agreed-upon price (the strike price) at a future
date. Options can be used to control large blocks of
stock for a small price. But they also can be used to earn income
or reduce risk. Best of all, options are traded as easily as any
With a covered-call strategy, you buy shares of a specific
stock and then sell a call option on that same stock. By doing
so, you agree to sell the position at a future date and price to
another investor. In exchange for giving the other investor the
right to purchase the shares at a future date and price, you earn
a premium in the form of a one-time up-front payment - the extra
So how does a covered-call strategy work with AT&T?
First, you need to own at least 100 shares of AT&T. I say
that because 100 shares of stock equal one option contract.
Once you own the 100 shares, you're ready to start generating
Now, let's create the income-generating scenario: AT&T
trades at roughly $34.70, which produces the 5.30%
yield. By selling one covered call contract
against 100 shares of AT&T, you can earn an extra $50
every two months.
So every 50 days, you give yourself the potential to collect
$50 against 100 shares of AT&T. Annually that equates to
roughly 15.4% of extra income. This strategy safely doubles, in
fact almost triples, the dividend of the stock.
So by implementing a
, you've taken an already high-yield income investment, AT&T,
and boosted your potential income to $5.34 per share from $1.84 a
share and your yield to 15.4% from 5.30%.
Are you interested in learning how to double your income from
AT&T? Would you like to earn more from other safe,
blue-chip dividend stocks
that you already own? If so, then I'd like to help you.
My #1 Strategy for Earning 10% a Month
A FULL VIDEO REPLAY of my latest webinar is now available! If
you missed my latest webinar, "Iron Condors 101." I've posted a
free video replay of my 60+ minute presentation. Follow the link
below to watch and you'll discover how you can consistently earn
10% a month… even in flat markets… using risk-controlled Iron
Condor trades. You'll find out which indexes are best for Iron
Condors and how you should allocate your portfolio to this
strategy. And you'll receive free action-specific trades you can
execute immediately - for gains you can earn in as little as 9
Click here to watch this video replay now