DELL Dividend
Although DELL has a dividend of 0.45 with an ex-dividend date of Apr 22, you can sell covered calls on Dell Technologies Inc. Class C 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):
Dell Technologies Inc. Class C (DELL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
114.20 | 114.85 | 114.87 | -3.50 | 9.3M | 27 | 79B |
DELL Dividend-Like Income Using Covered Calls
With DELL at 114.87, 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% | 3.45 | 0.9 |
5% | 5.74 | 1.6 |
10% | 11.49 | 3.1 |
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 DELL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 115.00 | 2.60 | 8 | 32.5 | 0.15 (0.1%) | |
May 3 | 115.00 | 4.00 | 15 | 26.7 | 0.15 (0.1%) |
5% Yield On DELL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 115.00 | 2.60 | 8 | 32.5 | 0.15 (0.1%) | |
May 3 | 115.00 | 4.00 | 15 | 26.7 | 0.15 (0.1%) |
10% Yield On DELL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 115.00 | 2.60 | 8 | 32.5 | 0.15 (0.1%) | |
May 3 | 115.00 | 4.00 | 15 | 26.7 | 0.15 (0.1%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend |
Want more examples? DEI Dividend | DEM Dividend