CWEN Dividend
Although CWEN has a dividend of 0.44 with an ex-dividend date of Jun 2, you can sell covered calls on Clearway Energy, Inc. Class C to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:45 PM ET):
| Clearway Energy, Inc. Class C (CWEN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 28.99 |
29.02 |
29.00 |
+0.05 |
226K |
- |
5.9B |
CWEN Dividend-Like Income Using Covered Calls
With CWEN at 29.00, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield |
Annual Premium |
Cents/Day |
| 3% |
0.87 |
0.2 |
| 5% |
1.45 |
0.4 |
| 10% |
2.90 |
0.8 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On CWEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
30.00 |
1.35 |
106 |
1.3 |
0.98 (3.4%) |
| May 16 |
30.00 |
0.30 |
15 |
2.0 |
0.98 (3.4%) |
| 5% Yield On CWEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
30.00 |
1.35 |
106 |
1.3 |
0.98 (3.4%) |
| May 16 |
30.00 |
0.30 |
15 |
2.0 |
0.98 (3.4%) |
| 10% Yield On CWEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
30.00 |
1.35 |
106 |
1.3 |
0.98 (3.4%) |
| May 16 |
30.00 |
0.30 |
15 |
2.0 |
0.98 (3.4%) |
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