One Way To Double Your Dividend From Corporate Bonds
Image by unsplash
Corporate bonds are near all-time highs as yield seekers are looking to improve on low yields from government bonds. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is one of the most popular vehicles for getting exposure to high quality corporate bonds. However, the dividend yield is only 2.3% for LQD, and the stock itself doesn’t have a lot of upside left.
As such, a strategist is using a covered call position to effectively double the divided the stock will pay over the next couple months.
This post One Way To Double Your Dividend From Corporate Bonds originally appeared at Investors Alley.
Category: Options Trading Strategy
