Cash-Secured Puts vs. Dividends: The Best Passive Strategy: Financial Freedom, #236
By Joshua King
()
About this ebook
I love being a dividend growth investor; however, it takes years for my plan to come to fruition.
Sometimes, I want to make a high level of current income. I want my money today!
In those times, I turn to selling cash-secured puts on the options market. I can generate as much money as I need by selling "insurance" to options buyers.
Trading on the options market does take discipline to control your emotions (fear and greed). However, if you can learn the ropes, you can earn over 30% annualized returns. Good Luck!
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Cash-Secured Puts vs. Dividends - Joshua King
Table of Contents
MILITARY FAMILY INVESTING | Joshua King | Home of the Free PDF
Cash-Secured Puts vs. Dividends
All Right Reserved Military Family Investing | 01 Cash-Secured Puts vs. Dividends
02 Dividend Investing with a Splash of Options Trading
03 Happy Cash Flow Retirement 11
04 Dividend Investing vs. Options Trading
05 The Magic of Dividend Growth Investing
06 Fruits of the DGI Tree
07 Compound Interest: You Either Pay It of Earn It
08 Selling Cash-Secured Puts of Passive Income
09 Options Trading for the Everyday Person
10 Covered Calls vs. Cash-Secured Puts
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MILITARY FAMILY INVESTING
Joshua King
Home of the Free PDF
www.militaryfamilyinvesting.com
Cash-Secured Puts vs. Dividends
The Best Passive Strategy
01 Cash-Secured Puts vs. Dividends
02 Dividend Investing with a Splash of Options Trading
03 Happy Cash Flow Retirement 11
04 Dividend Investing vs. Options Trading
05 The Magic of Dividend Growth Investing
06 Fruits of the DGI Tree
07 Compound Interest: You Either Pay It of Earn It
08 Selling Cash-Secured Puts of Passive Income
09 Options Trading for the Everyday Person
10 Covered Calls vs. Cash-Secured Puts
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
All Right Reserved Military Family Investing
01 Cash-Secured Puts vs. Dividends
The best way to retire early is through dividend investing—hands down. But that doesn’t mean that dividend investing is the best way to generate income.
The goal is to create a Happy Cash Flow Retirement where new money comes in every day. Dividend investing can create lots of cash flow, but you will surrender much of your control.
That’s when you create an options trading strategy involving selling cash-secured puts. With options trading, you can choose your risk/reward profile, which lets you generate as much income as you need (sometimes at your own peril).
Become Middle-Class PLUS
What is dividend investing? Dividends are profits that a company pays you when you are a shareholder. The goal is to purchase more shares as the company slowly increases its dividend payments. We call this dividend growth investing.
When looking at your DGI portfolio, you should focus on total return. Much of your return will come from the company’s share price growth.
Over time, with the share price appreciation, increase in dividend payments, and dividend reinvestment, you will feel the full effect of the power of compounding.
Let’s look at one of my favorite DGI stocks, Abbvie (ABBV). I purchased ABBV in June 2019, when the share price was $72, and the quarterly dividend was $0.96.
Today (May 2024), the share price is $154, and it pays a quarterly dividend of $1.55. The growth in share price and dividend payments is impressive.
Create Money, Grow Money, Spend Money
The only problem with dividend growth investing is that you will need lots of time to compound your efforts. It will take at least ten years to create a robust DGI portfolio. So, how do you generate income fast?
What are Cash-Secured Puts? Selling cash-secured puts is a form of options trading. Cash-secured
means you have the cash on hand to purchase the stocks from the buyer.
It may sound confusing, so let’s play out a scenario. Luckily,