With interest rates near 0% and traditional income investments like savings accounts and certificates of deposits (CDs) earning next to nothing, blue chip telecom stocks like AT&T (NYSE: T) and Verizon (NYSE: VZ) have become wildly popular.

That makes sense. Telecom is a “recession-proof” industry. Regardless of what’s happening with the economy, people will still need cell phones and cable TV. And with both stocks yielding over 4.5%, both companies look like a good choice for income investors in search of high yields.

[ad#Google Adsense 336×280-IA]But what if I told you there was a way to squeeze a 24% yield out of these very same high-quality stocks?

Suddenly, the deal seems a whole lot more enticing…

Let me explain how normal investors can do this…

First, we start with a stable, well-known stock like Verizon.

Verizon benefits from owning a huge barrier to entrance, something Warren Buffett always looks for in his investments.

Its national fiber-optic network stretching from Maine to California has helped secure its position as the leader in the domestic mobile market, now boasting 100 million subscribers.

It also has more than 20 million fixed-line customers and 9 million broadband subscribers.

When you add it all together, Verizon’s massive network is pumping out crazy amounts of data to a loyal subscriber base approaching 130 million — equal to nearly half the entire U.S. population.

That’s 130 million people that MUST go through this data giant to get their daily fix of information…

To the average income investor, Verizon looks like a great play with a 4.3% annual yield.

In fact, it’s one of the top stocks in all of the S&P 500 when it comes to dividend yields.

But I know from my years of experience as a former bond trader and private wealth manager in Chicago that there are other, more lucrative ways to get income than simply waiting for dividend checks to come in. In fact, thanks to a little-known yet thoroughly-proven strategy, there is a way to multiply the income we can earn from Verizon and reduce our long-term exposure risk to holding the stock should the market tank, say, six months from now.

I call it, the “Income Multiplier” strategy.

Simply put, this strategy identifies stocks with the potential to multiply the income you’d receive from normal dividends. Next, we capture immediate income, and reap the rewards.

Using this strategy, I was able to control a handful of Verizon shares and capture 2.3% in income in just 37 days.

Now, 2.3% may not sound like much, but that’s an annualized yield of about 24% — almost five times more than what Verizon pays in dividends. And as I’ll explain in a moment, as we repeat this strategy, a 24% yield is easily achievable.

I’ve used this Income Multiplier strategy on other well-known, stable companies to collect yields that dwarf basic annual dividend payouts. In fact, once you know the basics and settle on the stocks you want to use for this strategy, you’ll never look at regular dividends the same again.

For example, did you realize that for every $1,000 you invest in Microsoft (MSFT), you’ll only get back $29 over the next 12 months as a traditional dividend investor?

The thing is, you could do much better using the Income Multiplier strategy. What about taking the same $1,000 and getting paid $50 — a 5% yield — in just 39 days?

If we repeated this strategy just a few more times, we could effectively create a yield of 47% — 16 times more than Microsoft’s normal dividend yield. That’s exactly what I did with Microsoft in just a few weeks.

Over a six week period — making just one high-quality trade per week — I opened and closed six winning trades in a row from six well-known companies (including Microsoft).

You can see the results in the table below.

This table shows the first six trades we made in my new premium service, Income Multiplier Weekly.

Our strategy involves using put options, a strategy that too many investors often ignore when it comes to generating income.

I’ve been using this simple, effective strategy for years with my private clients — and I’m not alone. In fact, as we covered in Monday’s essay, some of the world’s greatest investors (including Warren Buffett) have used put options to get immediate income and pay only what they want to pay for high-quality stocks.

The results in the table above speak for themselves. By writing put options, we’re able to capture “premiums,” which is immediate income we get upfront — in addition to potentially owning some of the highest-quality stocks on the market.

I don’t have the space to cover all the details of the strategy in today’s issue. (If you want to learn more, you can watch this special presentation.)

But if you haven’t considered this safe, proven method of generating income, then you’re missing out on possibly the best chance to immediately multiply your income from stocks like the ones I mentioned above.

Good investing,

Michael Vodicka

Sponsored Link: If you want to start collecting more income than simple dividend stocks have to offer, I invite you to watch this special presentation. In it, I discuss exactly how we collect these yields of 36%… 47%… even 87%. I’ve also included a special offer for this new service, including a step-by-step guide and a “look over my shoulder” tutorial. To access these materials, go here.

Source: StreetAuthority