DE Dividend Type Payments
Although DE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Deere & Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Deere & Company (DE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
506.10 | 516.50 | 508.36 | -0.13 | 1.4M | 25 | 138B |
DE Dividend-Like Income Using Covered Calls
With DE at 508.36, 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% | 15.25 | 4.2 |
5% | 25.42 | 7.0 |
10% | 50.84 | 13.9 |
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 DE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 515.00 | 10.25 | 32 | 27.3 | 0.00 (0.0%) | |
Jul 3 | 517.50 | 0.48 | 3 | 16.0 | 1.00 (0.2%) |
5% Yield On DE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 515.00 | 10.25 | 32 | 27.3 | 0.00 (0.0%) | |
Jul 3 | 517.50 | 0.48 | 3 | 16.0 | 1.00 (0.2%) |
10% Yield On DE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 515.00 | 10.25 | 32 | 27.3 | 0.00 (0.0%) | |
Jul 3 | 517.50 | 0.48 | 3 | 16.0 | 1.00 (0.2%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | COGT dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | STZ dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | IREN dividend | |
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5. | TSLA dividend | 10. | QQQ dividend | 5. | IONQ dividend |
Want more examples? DDOG Dividend | DEA Dividend