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A reliable pay cheque from shares sounds like a dream, but it doesn’t have to be. We sit down with portfolio manager Phil Cornet from Atlas Funds Management to unpack a straightforward idea with powerful outcomes: hold quality Australian dividend payers and sell call options over them to target a 10% annual cash yield, paid quarterly. It’s a candid look at how buy-write strategies trade some upside for steadier income and lower volatility, and why that swap can make sense when multiples stretch and nerves fray.

Phil walks us through the mechanics of covered calls in plain English, the role of option premiums in smoothing returns, and the clear limitations when markets surge. We dig into their stock selection process across the ASX 200, blending a quantitative dividend-and-liquidity screen with qualitative checks on balance sheets, earnings durability, and industry structure. Instead of big sector bets, the portfolio spreads across GICS groups and stays underweight tech where dividends and liquidity are thin, aiming to deliver market-like breadth with a calmer ride.

We also talk practicalities: who uses a strategy like this, how advisers and institutions blend it with growth allocations, and what realistic distribution targets look like in shifting rate and volatility regimes. With a benchmark tied to RBA cash plus 3%, the fund sets a clear income bar above term deposits, while acknowledging the inevitable trade-offs in runaway bull markets. If you value dependable cash flow, franking potential, and measured risk-taking over chasing every last uptick, this conversation offers a grounded blueprint for income from Australian equities.

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