DE Dividend Type Payments
Although DE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DEERE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| DEERE (DE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 146.00 | 147.00 | 146.70 | -0.52 | 3.0M | 23 | 47B |
DE Dividend-Like Income Using Covered Calls
With DE at 146.70, 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% | 4.40 | 1.2 |
| 5% | 7.34 | 2.0 |
| 10% | 14.67 | 4.0 |
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 | |
| Nov 23 | 180.00 | 0.11 | 9 | 1.2 | 33.00 (22.5%) | |
| Nov 30 | 175.00 | 0.23 | 16 | 1.4 | 28.00 (19.1%) | |
| 5% Yield On DE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 23 | 175.00 | 0.21 | 9 | 2.3 | 28.00 (19.1%) | |
| Nov 30 | 170.00 | 0.45 | 16 | 2.8 | 23.00 (15.7%) | |
| 10% Yield On DE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 23 | 167.50 | 0.42 | 9 | 4.7 | 20.50 (14.0%) | |
| Nov 30 | 165.00 | 0.79 | 16 | 4.9 | 18.00 (12.3%) | |
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| Top 10 Open Interest For Dec 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | WSM dividend | |
| 2. | SPX dividend | 7. | IWM dividend | 2. | NVDA dividend | |
| 3. | EEM dividend | 8. | PBR dividend | 3. | AMAT dividend | |
| 4. | EWZ dividend | 9. | F dividend | 4. | AMRN dividend | |
| 5. | QQQ dividend | 10. | BAC dividend | 5. | AMD dividend | |
Want more examples? DDX Dividend | DEA Dividend
