Thanks for the advice! I read a great book that stresses the importance of dividend investing called The Power Curve - by scott kyle. He says that using dividends and options is the best way to get a superior return in bad economic times.
I picked up a copy of that book and it gets pretty technical but very interesting! He makes most of the book really easy to understand but the options chapter you need to read over twice.
I think it's best to stick with large value dividend companies and only use options once you become a seasoned investor.