TradeSherpa / Yield Depot: The September 25 Income Screen
TradeSherpa / Yield Depot · September 25, 2026 income screen
Data timing: 7:48 a.m. Central, before the U.S. regular session. Stock prices are the latest available September 24 closes, carried forward into September 25 premarket. This is a ranked sample of ten established dividend payers, not the ten highest yielding stocks in the entire market. Annual dividend is the latest declared recurring rate multiplied by its payment frequency; future payments are not assured.
| Rank | Ticker | Latest stock price | Annualized dividend / share | Yield at latest price | Exact 10% lower share price | Yield on cost if bought there |
|---|---|---|---|---|---|---|
| 1 | MO | $68.88 | $4.440 | 6.45% | $61.99 | 7.16% |
| 2 | PFE | $28.41 | $1.720 | 6.05% | $25.57 | 6.73% |
| 3 | VZ | $47.32 | $2.830 | 5.98% | $42.59 | 6.65% |
| 4 | O | $55.41 | $3.258 | 5.88% | $49.87 | 6.53% |
| 5 | D | $60.40 | $2.670 | 4.42% | $54.36 | 4.91% |
| 6 | T | $25.45 | $1.110 | 4.36% | $22.91 | 4.85% |
| 7 | SO | $82.89 | $3.040 | 3.67% | $74.60 | 4.08% |
| 8 | CVX | $205.65 | $7.120 | 3.46% | $185.09 | 3.85% |
| 9 | XOM | $162.14 | $4.120 | 2.54% | $145.93 | 2.82% |
| 10 | KO | $88.10 | $2.120 | 2.41% | $79.29 | 2.67% |
The exact 10% lower price is 0.90 × latest price, rounded to cents for display; the yield calculation uses the unrounded target. Actual listed put strikes may differ. If a share purchased at exactly 90% of today's price later returned to today's price, its price appreciation would be 11.11% on the purchase cost, before any dividends, premiums, fees or taxes. It might instead fall further. A put does not lock in a purchase at 10% below future fair value.
Illustration: put the strike above a chart support zone
One way we research a put is to mark a repeated price area on a dated stock chart, check whether it coincides with heavy trading or prior reversals, then compare listed strikes and their live bids. A support line is an observation about past trading, not a barrier that stops the next decline. We would also check earnings, debt, dividend coverage, position size and whether we would still want the shares after a 20%–30% additional fall. A strike 10% above support gives less distance to that line than a strike at or below it, so it should not be described as a safer entry by itself.
Realty Income example, entirely hypothetical support and option prices: September 24 share price $55.41; assume chart research identifies a support area centered at $45.45 (this level has not been validated against historical price data). A listed $50 put strike would be about 10.0% above that illustrative support and 9.8% below the snapshot market price. One put requires $5,000 reserved for 100 shares. Suppose a 45-day put actually sold for $0.50 per share: gross premium $50, or 1.0% of reserved cash for that 45-day term; assignment break-even $49.50 per share before fees. The $0.50 is not a live option bid.
If the broker permits that same reserved $5,000 to remain in a sweep paying the illustrative SPAXX 3.33% annualized rate for all 45 days, simple interest would be about $20.53 ($5,000 × 0.0333 × 45/365). Put premium plus sweep interest would be about $70.53, or 1.41% of $5,000 for the 45 days, before tax and fees. Sweep rates change, and some brokers pay zero on option collateral or do not allow a particular money-market fund to serve as instantly available collateral. Verify account treatment and settlement mechanics; do not count both a money-market position and cash as two separate investments.
If assigned at $50 and if O continues its latest $3.258 annualized dividend per share, the dividend yield on the $50 share purchase would be 6.52%, versus 5.88% at the $55.41 snapshot price. This is an annualized run rate after share ownership, not income during the 45-day put, and the dividend could change. A later covered call might earn an additional premium, but it could cap or end participation in a rebound. Returning from $50 to $55.41 would be a 10.82% share-price gain, if it happens. If the stock instead fell to $40 after assignment, the stock would show a $1,000 unrealized loss on 100 shares before offsetting premium; the support illustration provides no protection.
Our approach: seek acceptable businesses, a chosen entry price, enough liquid cash to meet assignment, and premiums that justify the downside. This is analysis to avoid wild bets, not a claim of a risk-free or objectively safe trade. Park eligible reserves in an accessible sweep only if the broker confirms the cash remains usable for assignment. Keep option income, cash interest, stock dividends, covered-call income and stock-price changes separate in the ledger.
Do not double count the option cycle
Waiting: a cash secured put may pay a quoted premium while the strike × 100 cash is reserved. No share dividend is paid to a put writer. After assignment: the holder may collect dividends if eligible and may sell a covered call, which limits upside and can result in stock sale. A hypothetical $0.50 put premium on a $50 strike is $50 gross for one 100-share contract, or 1% of $5,000 reserved for that contract's term. It is not a verified current bid. The stock may lose far more than the premium. A hypothetical $0.40 covered call credit on 100 owned shares is another $40 gross, only after shares are owned and if that contract is actually available. No verified option chain premium is included in the ten-stock yields.
Other income lanes, with dated reference rates
| Lane | Reference and latest verified yield measure | Practical distinction |
|---|---|---|
| Money market | Fidelity SPAXX 3.33% 7-day yield, dated Aug. 31, 2026 (latest search-visible figure; confirm today's number) | Variable rate; not assured to pay interest on put collateral |
| Ultra short Treasury ETF | SGOV 3.66% 30-day SEC yield, Sep. 23 | ETF price and distributions can move |
| Short Treasury ETF | SHY 4.41% 30-day SEC yield, Sep. 23 | 1–3 year rate exposure and price risk |
| Medium Treasury ETF | IEI 4.62% 30-day SEC yield, Sep. 23 | 3–7 year rate exposure; larger price sensitivity |
| Broad bond ETF | BND 4.89% 30-day SEC yield, Sep. 23 | Credit and duration risk; not a fixed return |
| Dividend equity ETF | SCHD 3.31% 30-day SEC yield, Sep. 23 | Equity price risk; distribution changes |
Illustrative balanced income mix: 20% SPAXX + 30% SHY + 30% BND + 20% SCHD gives a simple weighted yield-indicator of about 4.1% (0.2×3.33 + 0.3×4.41 + 0.3×4.89 + 0.2×3.31 = 4.118%). The component measures differ (7-day money-market yield vs. 30-day SEC yields), dates differ, and the mix is not a guaranteed portfolio yield or total return. Equity and bond prices can decline together. This mix is a comparison illustration, not an optimized allocation.
Margin: Pledging a portfolio or borrowing to sell more puts can amplify exposure, add financing cost and trigger a margin call or liquidation. Do not describe leveraged buying power as a fifth yield; subtract interest expense from net results and stress-test a sharp stock decline.
TradeSherpa.exchange beta: The tools and workflow are being enhanced; feedback is welcome. Explore TradeSherpa.exchange, Yield Depot, El Cameleón and Tall Texan. Confirm the final public URLs for the last two before using them as links in a published video description.
Ready-to-paste comment under the video
Here is the kind of patient analysis we like at TradeSherpa.exchange: identify a possible support zone, choose a cash secured put strike only where we would willingly own the dividend stock, and reserve the full purchase amount. For illustration, O at $55.41 with a hypothetical $45.45 support zone and $50 put strike is about 9.8% below the quoted share price. An invented $0.50 option credit would be $50 per contract; a 3.33% sweep on eligible $5,000 collateral for 45 days would add about $20.53 only if the broker permits and pays it. If assigned at $50, an unchanged $3.258 annual dividend would imply 6.52% yield on purchase cost. A rebound and later covered-call premium are possibilities, not promised income. Support can fail and the stock can lose far more than the premium. We are studying patient ways to collect income while staying liquid for a stock purchase, not chasing wild bets. TradeSherpa.exchange is in beta; feedback is welcome. See the full dated research and risk notes in this article.
If AT&T never reaches our put strike: one-year cash-flow illustration
The prior P/E strategy screen used AT&T near $25.43 and a target purchase about 10% lower. A $23 put, if listed for the chosen expiration, commits $2,300 for 100 shares and is about 9.6% below that share price. The following premium amounts are theoretical model ranges, not current executable bids: $6–$20 per 30-day contract, $13–$35 per 45-day contract, or $21–$48 per 60-day contract. They assumed approximately 25%–35% implied volatility. A different strike, volatility or date changes them. No stock dividend or covered-call income is earned if no shares are assigned.
Assume, solely for comparison: the shares remain above $23 on every expiration; each put expires without assignment; another is sold immediately at exactly the same premium; the entire $2,300 reserved cash is eligible for a constant 4% money-market sweep for all 365 days; each received premium is deposited into that same sweep at the start of its cycle; sweep interest is approximated with simple daily interest and no reinvestment of interest. The 4% is an assumption requested for the illustration, not a verified current sweep quote. A broker may pay zero on collateral, disallow that sweep, or change its rate. If cash must be moved or a money-market position sold to meet assignment, timing and settlement matter.
| Put term | Full cycles/year | Premium per cycle | Premium / $2,300 per cycle | Gross annual put premiums | Put premium / $2,300 annually | Interest on original $2,300 at 4% | Approx. interest on deposited premiums | Illustrative total cash received | Total / original $2,300 |
|---|---|---|---|---|---|---|---|---|---|
| 30 days | 12 | $6–$20 | 0.26%–0.87% | $72–$240 | 3.13%–10.43% | $92 | $1.58–$5.26 | $165.58–$337.26 | 7.20%–14.66% |
| 45 days | 8 | $13–$35 | 0.57%–1.52% | $104–$280 | 4.52%–12.17% | $92 | $2.36–$6.37 | $198.36–$378.37 | 8.62%–16.45% |
| 60 days | 6 | $21–$48 | 0.91%–2.09% | $126–$288 | 5.48%–12.52% | $92 | $2.97–$6.79 | $220.97–$386.79 | 9.61%–16.82% |
These are gross cash-flow scenarios, not likely annual returns or a backtest. Repeating identical premiums every cycle is improbable, the put might need to be bought back for a cost, and a stock-price decline can cause assignment and a loss far larger than the year's cash received. There are 5, 5 and 5 unallocated calendar days after the 30-, 45- and 60-day cycles respectively; the illustration assumes the sweep continues through those days. Interest on premiums uses simple interest from each cycle's start to year-end; actual posting, compounding and tax rules differ. The premiums themselves are already included once in the total and are not treated as a second investment principal.
If the put is assigned
Buying at $23 is cheaper than buying at $25.43 today, but it is not a guarantee of a good value. If AT&T drops to $16, the 100 shares bought at $23 show an approximately $700 stock loss, before offsetting the particular premium received; a 4% sweep for the full year would no longer apply to the $2,300 spent on shares. If the board maintains the present $1.11 annualized dividend, owning 100 shares has a $111 annual dividend run rate, or 4.83% on a $2,300 purchase cost, only for the time the investor owns eligible shares. Reinvested dividends would buy additional shares at the then-current market price, which may be below or above $23; dividend reinvestment does not buy at the put strike and the payout may be cut. A later covered call may add premium but can sell the shares and cap a rebound.
Liquidity, capital and borrowing
The cash-reserved approach can help plan an entry and maintain assignment funds while waiting, provided the broker actually lets the sweep serve as collateral. It is not capital preservation in the sense of protecting the $2,300 from a severe loss after assignment. Keeping an additional unpledged cash buffer may help meet other needs if the stock falls. Borrowing against a declining portfolio creates a debt and interest cost and may be least available when needed; the broker can demand more collateral or liquidate holdings without advance notice. A margin loan should not be presented as a dependable way to maintain liquidity during a crash. Evaluate the loan rate, maintenance requirements and a large drawdown separately before contemplating leverage.
Investor education note: I can discuss general strategies, examples and risks here. This article does not give personal advice, identify a suitable trade for any reader, promise a premium or recommend borrowing. Verify the live put bid and ask, cash-sweep eligibility, dividend declaration and your own account terms before acting.
Expanded sources
Educational comparison only, not personalized investment advice. Dividend rates, fund yields, share prices, option bids and margin terms change; verify at the point of use.