DG Dividend

Dollar General Corp dividend

Although DG has a dividend of 0.29 with an ex-dividend date of Jan 7, you can sell covered calls on Dollar General Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:00 PM ET):

Dollar General Corp (DG)
Bid Ask Last Change Volume P/E Market Cap
103.24 103.28 103.25 +0.13 640K - 0.0B

DG Dividend-Like Income Using Covered Calls

With DG at 103.25, 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% 3.10 0.8
5% 5.16 1.4
10% 10.33 2.8

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 DG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 110.00 0.05 4 1.3 6.72 (6.5%)
Dec 28 110.00 0.10 11 0.9 6.72 (6.5%)
5% Yield On DG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 107.00 0.15 4 3.8 3.72 (3.6%)
Dec 28 108.00 0.30 11 2.7 4.72 (4.6%)
10% Yield On DG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 107.00 0.15 4 3.8 3.72 (3.6%)
Dec 28 107.00 0.45 11 4.1 3.72 (3.6%)

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Want more examples? DFS Dividend | DGAZ Dividend