Ep92 - Dividend Investing Using Options
Summary
In this episode, host Dan Passarelli explains the mechanics of dividend investing, including how ex-dividend dates affect stock prices and option valuations. He discusses using the dividend payout ratio to screen for sustainable yields and demonstrates how to use put options to target specific entry prices that maximize dividend yield.
Topics discussed
Introduction to dividend investing and payout ratios
Analogy: Owning a company vs. receiving dividends
Ex-dividend dates and stock price adjustments
Impact of dividends on option pricing and exercise
Defining dividend yield and return on investment
The dividend payout ratio and sustainability
Screening stocks for high yield and low payout
Using put options to target specific dividend yields
Long-term value and buying during market dips
Calculating target entry prices with put premiums
Wealth Builder platform and Dividend DNA features
Platform promotion and closing remarks
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