One Way To Double Your Dividend From Corporate Bonds

| December 28, 2021

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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.

See how it was done here.

This post One Way To Double Your Dividend From Corporate Bonds originally appeared at Investors Alley.

 

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Category: Options Trading Strategy

About the Author ()

Jay is an options trading expert with 20+ years of experience, from the Wheat Futures pit at the Kansas City Board of Trade to market making on the CBOE. A University of Illinois economics graduate with an MBA and MS from Arizona State, he has also served as a senior hedge fund analyst. Today, Jay teaches advanced options strategies at NetPicks, helping retail traders use volatility and options to build consistent cash flow.
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