Generate Superior Equity Returns & Income with Dividends & Options
John Dobosz discusses his approach to generating equity income by investing in undervalued dividend stocks and selling options for additional income. He looks for dividend stocks trading at discounts to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA (earnings before interest, taxes, depreciation and amortization). In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow. When selling options, he targets theoretical annualized returns of at least 15%.