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
165.31 169.95 165.31 -2.45 1.4M 16 53B

DE Dividend-Like Income Using Covered Calls

With DE at 165.31, 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% 4.96 1.4
5% 8.27 2.3
10% 16.53 4.5

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
May 3 172.50 0.25 10 2.5 2.55 (1.5%)
May 10 175.00 0.31 17 1.8 5.05 (3.1%)
5% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 172.50 0.25 10 2.5 2.55 (1.5%)
May 10 172.50 0.58 17 3.4 2.55 (1.5%)
10% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 3 170.00 0.60 10 6.0 0.05 (0.0%)
May 10 170.00 1.09 17 6.4 0.05 (0.0%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.GRUB dividend
2.COTY dividend 7.BAC dividend   2.TSLA dividend
3.EEM dividend 8.EWZ dividend   3.JNPR dividend
4.FXI dividend 9.XOP dividend   4.CLF dividend
5.SPX dividend 10.XLF dividend   5.FCX dividend

Want more examples? DDS Dividend | DEA Dividend