Many of the stocks that I own and write Covered Calls upon also pay dividends.  Dividends occur on a regular basis and add significantly to my annual investment income.  Year to date I have received a total of $3,942.65 in dividends in my various accounts for 2010.  My year to date average monthly dividends received is currently $563.24.  These dividends currently represent 26.67% of my monthly investment cash flow and 1.84% return on my current basis value.

During July, I received notice of the following dividends paid in various accounts for a total of $229.00:

I use my basis per share to determine the simple and annualized percentage return because I feel that it gives me a better representation of the value of the dividends as they relate to my portfolio.  My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock.  I calculate my basis per share as my acquisition price less any option premiums received on those shares.  I do not use dividends to reduce my basis.