DE Dividend Type Payments

Deere & Co dividend

Although DE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Deere & Co 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):

Deere & Co (DE)
Bid Ask Last Change Volume P/E Market Cap
156.97 160.64 157.61 -1.23 1.7M - 0.0B

DE Dividend-Like Income Using Covered Calls

With DE at 157.61, here's a table showing how big the annual "dividend" (ie. 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% 4.73 1.3
5% 7.88 2.2
10% 15.76 4.3

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
Jan 25 162.50 0.15 3 5.0 1.86 (1.2%)
Feb 1 170.00 0.20 10 2.0 9.36 (5.9%)
5% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 162.50 0.15 3 5.0 1.86 (1.2%)
Feb 1 167.50 0.38 10 3.8 6.86 (4.4%)
10% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 162.50 0.15 3 5.0 1.86 (1.2%)
Feb 1 165.00 0.65 10 6.5 4.36 (2.8%)

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