NEW YORK (TheStreet) -- Quarterly dividends can be a great source of income. With each dividend payment received, investors are able to lower their risk. Investors need to be a shareholder on the day of record for the dividend. To qualify as a shareholder of record you must buy the stock before it trades ex-dividend and keep it until the ex-dividend date.

Using call options for hedging is one of my favorite and easy-to-understand methods of capturing gains through options and dividends. This method can be used to capture more than one option by holding them longer than three months.

I sorted by highest yield first and Ares Capital (ARCC - Get Report) is the highest with a yield of over 9%. Ares Capital is a credit-focused private investment adviser.

   Yield: 9.74%
   Dividend Amount: 37 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.79

Strategy:Buy Ares Capital stock and sell the June $15.00 strike or lower call for 25 cents over the intrinsic value. I sell the call option first to ensure the stock option leg is complete.

The option strike has an encouraging open interest over 800.

When learning a new trading strategy, it is better to use a simulated trading account first. Stockpickr is a great tool to practice new strategies and learn about the market. I use Stockpickr and recommend it. It is easy to make mistakes when starting out on a new strategy and mistakes cost a lot less with a simulated account. After a level of confidence is built, then it may be time to move into a real money account.

It is important to sell the call option hedge at or near the asking price for at least the minimum amount over intrinsic value. I don't want the option hedge unless the sale will provide at least the minimum 25 cents over intrinsic value.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 25 cents. The most I can make is 62 cents if I hold the covered call through option expiration day and the stock gets called away.

My last step (completed before making a trade on the same day) is to check company announcements and news sources for possible price moving events. This is especially critical during earnings season.

Digital Realty Trust (DLR - Get Report)

Digital Realty provides a wide range of data center solutions and consultation, including building, buying, managing, and data center outsourcing services.

   Yield: 4.19%
   Dividend Amount: 73 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.06

Strategy:Buy Digital Realty Trust stock and sell the June $70.00 strike or lower call for $1.46 over the intrinsic value. I will look to close out the covered option with a gain of about 65 cents, plus the quarterly dividend paid by the company.

The most I can make is $2.19 if I hold the covered call through option expiration day and the stock gets called away.

 T. Rowe Price Group (TROW - Get Report)

 T. Rowe Price Group, Inc. is a publicly owned asset management holding company.

   Yield: 2.34%
   Dividend Amount: 34 cents
   Ex-Dividend Date: June 12, 2012
   Beta: 1.61

Strategy:Buy TROW stock and sell the June $50.00 strike or lower call for 56 cents over the intrinsic value.

The option may get exercised early for a gain. If not, after qualifying for the dividend I will attempt to close out the trade with a gain of near 20 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 56 cents. The most I can make is 90 cents if I hold the covered call through option expiration day and the stock gets called away.

   Eastman Chemical (EMN - Get Report)

 Eastman Chemical, a chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers.

   Yield: 2.27%
   Dividend Amount: 26 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.97

Strategy:Buy Eastman Chemical stock and sell the June $35.00 strike or lower call for 75 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 32 cents, plus dividend.

   XL Group (XL)

 XL Group, through its subsidiaries, provides insurance and reinsurance.

   Yield: 2.16%
   Dividend Amount: 11 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 2.43

Strategy:Buy XL Group stock and sell the June $20.00 strike or lower call for 60 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 26 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 60 cents. The most I can make is 71 cents if I hold the covered call through option expiration day and the stock gets called away.

Comerica (CMA - Get Report)

 Comerica, through its subsidiaries, provides financial products and services.

   Yield: 2.04%
   Dividend Amount: 15 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.21

Strategy:Buy Comerica stock and sell the June $29.00 strike or lower call for 79 cents over the intrinsic value.

After qualifying for the dividend, I will attempt to close out the trade with a gain of near 23 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 79 cents. The most I can make is 94 cents if I hold the covered call through option expiration day and the stock gets called away.

   Motorola Solutions (MSI - Get Report)

 Motorola Solutions provides communication infrastructure, devices, software and services.

   Yield: 1.84%
   Dividend Amount: 22 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.63

Strategy:Buy Motorola Solutions stock and sell the June $46.00 strike or lower call for 95 cents over the intrinsic value. I will look to close out the covered option with a gain of about 50 cents, plus dividend.

The most I can make is $1.17 if I hold the covered call through option expiration and the stock gets called away.

   Ecolab (ECL - Get Report)

 Ecolab develops and markets programs, products, and services for the hospitality, food service, health care, industrial and energy markets.

   Yield: 1.24%
   Dividend Amount: 20 cents
   Ex-Dividend Date: June 15, 2012
   Beta: 0.69

Strategy:Buy Ecolab stock and sell the June $62.50 strike or lower call for $1.08 over the intrinsic value. I will look to close out the covered option with a gain of about 45 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about $1.08. The most I can make is $1.28 if I hold the covered call through option expiration day and the stock gets called away.

DISCLOSURE: Author does not hold a position in any stock mentioned.