DE Dividend Type Payments

Deere & Company dividend

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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