DISCK Dividend Type Payments

Discovery, Inc - Series C dividend

Although DISCK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Discovery, Inc - Series C 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):

Discovery, Inc - Series C (DISCK)
Bid Ask Last Change Volume P/E Market Cap
27.50 31.02 29.32 -0.71 1.2M - 16B

DISCK Dividend-Like Income Using Covered Calls

With DISCK at 29.32, 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% 0.88 0.2
5% 1.47 0.4
10% 2.93 0.8

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 DISCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 32.50 0.20 31 0.6 1.48 (5.0%)
Sep 20 32.50 0.50 66 0.8 1.48 (5.0%)
5% Yield On DISCK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 32.50 0.20 31 0.6 1.48 (5.0%)
Sep 20 32.50 0.50 66 0.8 1.48 (5.0%)

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