CWEN Dividend
Although CWEN has a dividend of 0.45 with an ex-dividend date of Dec 1, 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 Wed 4:16 PM ET):
| Clearway Energy, Inc. Class C (CWEN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 33.81 |
34.80 |
34.66 |
+2.17 |
4.9M |
- |
6.6B |
CWEN Dividend-Like Income Using Covered Calls
With CWEN at 34.66, 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% |
1.04 |
0.3 |
| 5% |
1.73 |
0.5 |
| 10% |
3.47 |
0.9 |
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 |
| Dec 19 |
35.00 |
0.90 |
45 |
2.0 |
0.20 (0.6%) |
| Nov 21 |
35.00 |
0.65 |
17 |
3.8 |
0.20 (0.6%) |
| 5% Yield On CWEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
35.00 |
0.90 |
45 |
2.0 |
0.20 (0.6%) |
| Nov 21 |
35.00 |
0.65 |
17 |
3.8 |
0.20 (0.6%) |
| 10% Yield On CWEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
35.00 |
0.90 |
45 |
2.0 |
0.20 (0.6%) |
| Nov 21 |
35.00 |
0.65 |
17 |
3.8 |
0.20 (0.6%) |
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