1 Simple Step for 26% Dividends in 2026 – The Contrary Investing Report

Core Insights - The article discusses strategies to achieve a 26% return on investment portfolios, emphasizing the importance of generating income without depleting principal amounts [1][2]. Group 1: Investment Strategies - The SPDR S&P 500 ETF Trust (SPY) has a low yield of 1.1%, but options strategies can enhance returns significantly [2][5]. - Using OptionSignals, investors can identify optimal times to write covered calls or sell puts, potentially increasing income from SPY [2][6]. - A specific call option for SPY shows a 58% chance of expiring worthless, with a total return of 0.74% if called, which annualizes to 28% due to the short timeframe [5][6]. Group 2: Yield Enhancement Techniques - The article highlights the potential for higher yield boosts by adjusting strike prices; for example, a $690 strike for SPY increases the chance of retaining shares to 77% but lowers the yield boost to 11.2% annualized [6]. - The Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) and Global X NASDAQ 100 Covered Call ETF (QYLD) are mentioned as examples of funds that utilize similar strategies to achieve yields up to 11.8% [6][7]. - A DIY approach using Invesco QQQ Trust Series (QQQ) can yield a 0.69% boost, annualizing to 42% through similar call-writing strategies [7][8]. Group 3: Individual Stock Applications - Annaly Capital (NLY), a mortgage REIT, is highlighted for its 12.3% yield and potential for covered calls, with specific strike prices suggested for maximizing income [9][10]. - Selling call options on NLY can provide a 0.9% yield boost, which annualizes to 22.5%, enhancing overall returns [10][12]. - The article emphasizes the importance of timing in options trading, advocating for selling calls when stocks are at short-term highs to maximize income [12][13].