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 Fri 4:16 PM ET):
Deere & Company (DE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
405.00 | 408.99 | 407.89 | -1.11 | 1.4M | 12 | 114B |
DE Dividend-Like Income Using Covered Calls
With DE at 407.89, 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% | 12.24 | 3.4 |
5% | 20.39 | 5.6 |
10% | 40.79 | 11.2 |
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 | |
Jun 7 | 410.00 | 11.65 | 29 | 40.2 | 1.01 (0.2%) | |
Jun 14 | 410.00 | 12.55 | 36 | 34.9 | 1.01 (0.2%) |
5% Yield On DE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 7 | 410.00 | 11.65 | 29 | 40.2 | 1.01 (0.2%) | |
Jun 14 | 410.00 | 12.55 | 36 | 34.9 | 1.01 (0.2%) |
10% Yield On DE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 7 | 410.00 | 11.65 | 29 | 40.2 | 1.01 (0.2%) | |
Jun 14 | 410.00 | 12.55 | 36 | 34.9 | 1.01 (0.2%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | IEP dividend | |
2. | IWM dividend | 7. | TSLA dividend | 2. | INFN dividend | |
3. | SPY dividend | 8. | SLV dividend | 3. | PSFE dividend | |
4. | HYG dividend | 9. | NVDA dividend | 4. | MNDY dividend | |
5. | FXI dividend | 10. | TLT dividend | 5. | NOVA dividend |
Want more examples? DDOG Dividend | DEA Dividend