Certain portfolios benefit from the yield enhancement strategy we employ at Pacific Trust Wealth Management.  The typical long term equity portfolio will realize the majority its long term gains in the form of dividends.  This consideration is often lost on investors who see headlines talking about individual equities having great returns or great losses.  Slow and steady wins the race and dividends should be part of that conversation.

There is another “option,” however.  What if you combined all the benefits of dividend paying stocks, but took the extra step of selling covered calls against those positions?  Selling covered calls allows the owner of stock to sell those shares to another individual only if they reach a predetermined level that the owner feels is a great price.  In fact, it is a great way to achieve the discipline that so many investors have a difficult time with.  Working with Pacific Trust to help implement this strategy is a great step in building a well-rounded portfolio.