How To Collect 5% Yields While Tech Bleeds
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Tech just lost 2.7% in a single session. Blake made 5.9% in the same timeframe.
While everyone panicked about growth stocks cratering, Blake was hunting dividend payers in the only three sectors that actually rallied today.
Consumer staples, energy, and healthcare all moved higher as technology burned.
The divergence tells you everything. Institutional money is rotating out of risk and into safety. Blake built a scanner to find exactly where that money is landing.
Here's what he found when he scanned for dividend stocks offering over 2% yields with tight option spreads:
Energy sector (17 stocks qualified):
- ExxonMobil XOM paying nearly 1% dividend next week alone
- Chevron CVX offering 4.4% annual yield at 15th percentile volatility
- Calls are dirt cheap for positioning into 2025
Consumer staples (10 stocks):
- Target TGT paying 5% yield with 64% implied volatility
- You can sell the $90 put on Target for 5.9% return, creating an $85 cost basis
- Pepsi PEP at 3.9% yield setting up for December dividend capture
Healthcare (6 stocks):
- Johnson & Johnson JNJ ex-dividend date is November 25th
- Merck MRK positioned for 10% move to $100-102 while paying 3.5% yield
- You can collect 2.5% monthly premium selling puts below current prices
The math on Target alone is compelling. The stock trades at $90.75. Sell the December $90 put and collect $5.35. That's a 5.9% return for one month. If you get assigned, your cost basis drops to $85. Then you collect the 5% annual dividend on top of that premium.
Blake's scanner identified 33 total stocks across these three defensive sectors. All pay over 2% yields. All have solid balance sheets with strong fixed charge coverage ratios. All are in sectors that rallied today while tech imploded.
The trade isn't complicated. When growth stocks sell off and volatility spikes, institutional money rotates into dividend payers. Blake expects this flight to safety to continue for weeks or months as the market resets from extreme tech concentration.
You can buy the stocks outright and collect dividends…
You can sell puts below current prices and get paid to wait…
You can buy cheap calls in low volatility names positioning for rallies.
All three strategies work when defensive sectors lead.
Video Length: 00:13:18
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