Dividend growth stocks are some of the most dependable and stable investments available. These stocks tend to increase their dividends yearly, providing shareholders with a growing income stream and a long-term capital gains opportunity.
Dividend Aristocrats are the 'jewel' of this group: stocks that have distributed and increased annual dividends for over 25 years.
Adding options trade to those will increase profits more and increase the edge. You can use the Covered Call strategy to generate two income streams or sell puts under the market price, buy them at a discount if they drop, and collect the interest if they don't.
The Dividend Aristocrats Excel Template is designed to screen for the S&P 500 Dividend Aristocrats index stocks. In addition, the template helps you to find covered calls trades on high-quality dividend growth stocks that have paid and increased their dividends for at least 25 consecutive years.
Since this is a customizable Excel template, you can use our plugin to adjust it for your workflow (For example, Change for Wheel strategy, Add custom data points, etc.).
Covered calls are a great tool to generate extra income, especially when combined with solid dividend yields. This template helps you capitalize on several edges:
- Dividends - Stocks that return money to their investors tend to have high long-term returns.
- Stability - These stocks have a strong track record of dividend distribution. It is 'baked in' their budget, and they tend to be more stable and less volatile.
- Selling premium is a high probability strategy and shows a positive long-term return.
The Excel Template
- Download the excel template here
- Here is a blog post about: Excel template: Good covered calls trades on Dividend Aristocrats.
The Excel template is built with an example use-case, but you can use your own.
Read the blog post for more information and step-by-step instructions.
When you use the Dividend Aristocrats template, you will get a shortlist of companies that have been paying dividends for more than 25 years, with a potential covered call. Then, you can compare the yield of both income sources (and more) to find the optimal trade.