DE Dividend
Although DE has a dividend of 1.62 with an ex-dividend date of Sep 30, 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 Wed 4:16 PM ET):
| Deere & Company (DE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 469.13 | 472.00 | 469.12 | +0.42 | 1.5M | 25 | 127B |
DE Dividend-Like Income Using Covered Calls
With DE at 469.12, 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% | 14.07 | 3.9 |
| 5% | 23.46 | 6.4 |
| 10% | 46.91 | 12.9 |
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 | |
| Oct 3 | 470.00 | 8.20 | 17 | 36.5 | 0.00 (0.0%) | |
| Oct 10 | 470.00 | 10.05 | 24 | 33.5 | 0.00 (0.0%) | |
| 5% Yield On DE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 470.00 | 8.20 | 17 | 36.5 | 0.00 (0.0%) | |
| Oct 10 | 470.00 | 10.05 | 24 | 33.5 | 0.00 (0.0%) | |
| 10% Yield On DE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 470.00 | 8.20 | 17 | 36.5 | 0.00 (0.0%) | |
| Oct 10 | 470.00 | 10.05 | 24 | 33.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | CBRL dividend | |
| 2. | SPY dividend | 7. | IBIT dividend | 2. | AEVA dividend | |
| 3. | PCG dividend | 8. | IWM dividend | 3. | OPEN dividend | |
| 4. | TSLA dividend | 9. | SLV dividend | 4. | QURE dividend | |
| 5. | QQQ dividend | 10. | FXI dividend | 5. | LDI dividend | |
Want more examples? DDOG Dividend | DEA Dividend
