DFIN Dividend Type Payments

Although DFIN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DONNELLEY FINANCIAL SOLUTIONS INC 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):

DONNELLEY FINANCIAL SOLUTIONS INC (DFIN)
Bid Ask Last Change Volume P/E Market Cap
19.42 21.20 19.43 +0.13 174K 88 0.7B

DFIN Dividend-Like Income Using Covered Calls

With DFIN at 19.43, 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% 0.58 0.2
5% 0.97 0.3
10% 1.94 0.5

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 DFIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 22.50 0.45 157 0.3 1.30 (6.7%)
5% Yield On DFIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 22.50 0.45 157 0.3 1.30 (6.7%)

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Want more examples? DFI Dividend | DFJ Dividend