Many investors think in binary terms. Often times, that means when looking at a particular stock, they tend to distinguish between whether it is a “value” or “growth” stock. 

Value investors like to focus on companies with low valuations — whether based on the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio or something similar. Growth investors, on the other hand, focus on things like earnings growth, expecting share price to follow profits higher.

#-ad_banner-#There are many studies showing specific valuation tools can work — if we define “working” as delivering market-beating results over a long-enough time horizon. In other words, value investing often means you have to be patient through years of underperformance — a time horizon many growth investors don’t share. 

But growth investing has its own caveats. For instance, a stock’s price can fall as quickly as it rose if a company’s growth slows or if a competitor bursts onto the scene. 

Despite the seemingly stark contrast between value and growth investing, I tend to blur the lines between the two disciplines. 

For instance, I often use the PEG ratio, which combines a company’s P/E ratio and its earnings per share (EPS) growth rate. The PEG ratio recognizes that companies growing earnings more rapidly should command a higher P/E multiple. 

The line between growth and value can also be blurred when we talk about individual companies. 

Take Apple (Nasdaq: AAPL) for example. The company seems to be experiencing a transition from a “growth” stock to a “value” stock. 

Because many investors take a binary view of the markets, they are debating whether Apple should be considered a growth stock or a value stock at this juncture. I disagree with both of these views. 

I believe it should now be considered an income stock. 

Apple’s products are a part of everyday life for hundreds of millions of people around the world, and the company is still growing at an impressive clip. The tech giant reported revenue growth of nearly 28% to $233.7 billion in the past year. Earnings have continued to soar, most recently to $3.28 per diluted share in the first fiscal quarter of 2016 — a 7% jump over last year. 

Yet, investors seem to panic at any mention of slowing growth, especially with regards to iPhone sales. 

Apple has sold more than 800 million iPhones since the product was introduced in 2007, but the truth is, growth is slowing. Apple still holds about 35% of the market, which is nothing to sneeze at, especially since no other competitors currently come close. 

While growth is indeed slowing, analysts expect earnings growth to average 11.5% a year over the next five years. Apple also appears to be undervalued based on the PEG ratio, which is currently 0.88. (A “fairly” valued PEG ratio is 1.) 

The PEG ratio is one of my favorite objective measures of value. But investors aren’t always objective — especially when a company begins to blur the line between growth and value. 

In addition to offering solid growth and value, Apple boasts a massive cash hoard. 

This past summer, Apple became the first corporation ever to have more than $200 billion on its balance sheet. As some analysts noted, much of the cash is overseas and the company could face large tax bills. But even taking that into consideration, the company’s cash on hand exceeds the market cap of the vast majority of publically traded companies in the United States. 

Apple currently pays an annual dividend of $2.08 per share. This adds up to about $11.5 billion for all outstanding shares, which is less than 5% of the company’s revenue. And the payout ratio — the proportion of earnings paid out as dividends to shareholders — sits at 21.5%, leaving plenty of room for increases. 

But income investors don’t need to rely solely on Apple’s growing dividend payouts… 

Double Apple’s Payout In Minutes 
I recently told my readers how they could buy Apple and then generate an additional $4.15 a share in income. That’s almost twice as much as Apple’s yearly payout in one shot. The money would be deposited directly into our accounts and is ours to keep no matter what — just like a dividend. 

There’s no such thing as a free lunch. So there must be a catch, right? 

There is: In return for that substantial income payment, we agreed to sell our shares for $100 apiece if they close anywhere above that price on Feb. 19. 

If AAPL is trading above $100 in mid-February, we’ll sell our shares for $100 apiece, booking a 4.4% return over our cost basis (our entry price minus the $4.15 we received in income). That may not sound like much, but considering the trade will be open for less than six weeks, it works out to an annualized rate of return of 42%. 

If shares close below $100 on Feb. 19, we’ll keep them — along with our $4.15 a share in income — and we’ll have the chance to bring in even more income with a similar trade. 

This strategy is known as selling covered calls. It involves options, but it is one of the simplest and most conservative income strategies available to investors. And you can use it with almost any stock in your portfolio to generate extra income. 

With 2016 looking like it could be a tough year for the markets, investors need every extra cent they can get. By selling covered calls, you could pocket an extra $3,000 a month. 

I’ve put together a short presentation on how to do just that. I explain the strategy step by step, so even if you’ve never traded an option a day in your life, you will be able to get started right away. 

I’ll also share how you can generate hundreds of dollars in the next 48 hours — from stocks you already own. It only takes 90 seconds. Click here to watch.