Each of these stocks has a long history of not only paying dividends but also routinely increasing the dividend payout.
Neither stock is a bona fide Dividend Machine because their yields are less than 3.5%. By
employing covered calls, you could increase your income. If the call buyer takes your stock you also pocket a nice capital gain in addition to the call premium. Should the stock price not increase as the call buyer expects, and you are stuck with it, you still have a nice dividend payer (note that each stock pays more than 3% per year) with the opportunity to sell more calls in the future.
Dividends & Covered Calls on AZN & BMY
AstraZeneca's current annual yield is 3.74% with average dividend growth over the past five years of 6.79%. Bristol-Myers Squibb's annual yield is 3.01% with average dividend growth over the past five years of 3.23%.
Consider these two fine stocks for the income producing portion of your portfolio.
TheMoneyMadam
