Options as a Strategic Investment

In this series, we screened for 6 parameters:
1. High Dividend Yield – Above 5 % (The S&P 500 average dividend yield is approximately 3.42%).
2. Moderate Dividend Payout Ratio – Below 50 % (The S&P’s payout ratio is approximately 59 %).
3. Less Than 40 % above 52-Week Low
4. Options Available
5. Current [...]

With the recent rash of dividend cuts by historically dependable dividend-paying companies, income investors are finding it increasingly challenging to find safe high dividend yields. Indeed, Standard & Poor’s expects 2009 to have the biggest drop in dividend payouts since 1942. The market decline has created many accidentally high dividend stocks, as companies who’ve maintained [...]