Add Income to Your Income
With Dividend Plus, ZEGA takes a traditional investment idea, owning dividend paying stocks, and attempts to double down with covered calls. The multi-stage filtering process builds a portfolio of stocks paying over 4% annually in dividends. Then we layer on our options trading expertise to try and add another 4% by selling covered call options, a traditionally considered a conservative strategy. The potential 8% cash generation can keep your income stream ahead of current inflation rates. And doesn't add any fixed income-related risk like bond defaults or rising interest rates.
Dividend Plus stock selection process
In ZEGA's selection process, first we build a basket of 15 to 25 stocks each paying an annual 4% or greater dividend. Selected stocks must provide sector diversification and liquid option markets. Next, we put the “Plus” in by utilizing a covered call layer aiming at an additional 4% income