How to Buy Dividend Stocks at a Discount (and Get Paid While Waiting!)

Selling Cash-Secured Put Options

If you're a dividend-focused investor like me, you're probably always on the lookout for ways to build your portfolio without overpaying. One reader recently told me about selling Cash-Secured Puts (CSPs) and, after much research, I realized it is a powerful tool when used thoughtfully.

The Basic Idea

Benefit from waiting to buy dividend stocks you already want, by either being paid to wait or buying the stocks at a discount. Last night (12 May 2025), I put this knowledge into action.

As usual, after receiving my monthly dividends, I was planning to reinvest them into more shares of QYLD at $16.40. But instead of buying QYLD outright, I chose to sell the following cash-secured put (CSP) option:

• Strike price: $16 (expiring June 20, 2025)
• Premium collected: $80 (1 contract at $0.80/share)
• Breakeven price: $15.60 ($16 strike price — $0.80 premium)

Here how this strategy works for me ….

SCENARIO 1: If QYLD stays around $16, I keep the $80 premium. Far more than the $11 dividend I would get from buying QYLD right now.