At the end of every quarter, AJ Bell — the well-known stockbroker — produces a Dividend Dashboard report and makes it freely available on their website. The report aggregates dividend forecasts for the FTSE 100 companies from all the leading city analysts and provides an outlook for each company and the index as a whole.  If you are an income-focused investor, it’s a ‘must read’.

The Dividend Dashboard for the final quarter of 2021 was recently released and it projected that the final dividend payout for 2021 would be £81.8 billion. That’s a whopping 32% increase on the previous year.

Now, that’s not all together unexpected after the mass culling of dividends in 2020 and the growth is set to slow in 2022. But, with the Bank of England predicting that inflation is heading above 7% and bank accounts paying next to nothing, there is no denying that with a projected yield of 4.1% in 2022, it’s a good time to be a FTSE 100 dividend investor.

But what if I told you that there is a straightforward strategy that can potently boost that yield 5X. That’s right, instead of earning a pittance in the bank, or just over 4% from dividends, you could regularly generate annualised yields of 20% or higher from those exact same FTSE 100 stocks.

Selling Stock Options

Well, that’s exactly what I — and my clients — regularly do here at FIRE Revolution.

We teach a set of strategies to regular investors — just like you and me — that enable them to spin-off up to four different income streams from exactly the same blue-chip stocks that feature in the AJ Bell report.

Companies such as Glencore, Shell, HSBC, Lloyds, Associated British Foods, Admiral, GlaxoSmithKline, Tesco, and British American Tobacco. In other words, some of the most boring — but reliable — companies around.

How do we do it? Quite simply by selling stock options on the sort of shares that we’d be happy to own long-term. There is nothing opaque or mysterious about the approach. Indeed, it is well known to finance professionals and savvy private investors in the US. However — until now — it has largely flown under the radar here in the UK.

If you would like to learn exactly how we achieve this then register for our next free LIVE training session.

Recent Trades

At FIRE Revolution, we only take on limited numbers of new clients at a time. That’s so that I can work closely with each of them as they make their way through the 13-week training programme to ensure they become experts in the process.  Our most recent intake is making great progress and — after practising in demo accounts — some of them have started to put on real positions.

For example, Stephen recently sold February 580p puts on Barratt Developments Plc — the house builder — for a premium that equated to an annualised yield of 41.75%. As things stand, they will expire worthless on Friday and he will be able to repeat the same trick to bring in another hefty payment. Or, if they are exercised, he’ll have picked up the shares at a bargain price and locked in a forecast dividend yield of 6.9%. He could then look to sell covered calls on his shares to bring in even more premium.

Also, this week, Mark took advantage of the rise in oil prices to buy back his previously sold February 350p puts on BP Plc. He originally sold them for £1,015 — an annualised yield of 18.9% — but chose to buy them back early to remove his obligation and lock in 85% of that premium. Now, that’s an advanced move that we teach as one of the twenty-eight bonus modules that accompany the core strategy, but it illustrates the tools you have at your disposal with this style of investing.

And, just to illustrate that we also utilise US stocks, Barry recently sold February $28 strike price covered calls on his AT&T shares when they were trading at $26.30 and was paid 21 cents per share. If the share price stays below $28, his obligation will expire, he keeps the premium, and he can simply rinse and repeat.

If it rises above $28 by expiration day then he still gets to keep the premium paid and his shares will be sold for $1.70 more than they were trading for at the time. Oh, and just to add the cherry to the cake, he also picked up a dividend of 52 cents per share immediately afterwards.

Testimonials

If all those numbers have left your head spinning, don’t worry, I’ll explain exactly how it works in the webinar. In the meantime, here is some feedback from a couple of recent clients.

The course and trading have been excellent giving me the knowledge to put on trades whereby I have moved a large proportion of my savings into it.  Using Greg’s basic core conservative strategy, I have made 17-20% so far this year making 25-30k.  Greg has been very open and honest with good quick, accurate, intelligent feedback, if I wish to go for higher returns and increase my knowledge there is a pathway with fellow course investors who share ideas for everyone’s benefit. Looking long term and with the power of compound interest, it’s keeping me ahead of the daily cost of living and the ability to help others financially quite stress free. — Steve G.

I have now been on the course for 3 months. There is no doubt that an enormous amount of effort has been put into making it. There are degrees of complexity as to how far you want to proceed, however, the basic form is one that clearly gives a very useful return. It does require you to put in some effort but when you find the answers the waters quickly clear. This course gives you everything you require to trade options. The backup from Greg is superb and you will get answers very quickly to any question you put to him. Furthermore, you have the facility to converse with all other members for as long as you wish. No good course is ever cheap, but so far I have no regrets in having bought it. — David H.

Webinar

If you’d like to learn how to potentially boost your income to 5X the forecast dividend yield of the FTSE 100, then FIRE revolution could well be for you.

We run regular training webinars where we explain the strategy in detail, demonstrate it LIVE in the market, discuss the training programme we offer, and of course, answer all your questions.

If that is of interest, then I’d love for you to join me at our next LIVE webinar.  Register here.