DLPH Dividend Type Payments

DELPHI TECHNOLOGIES PLC dividend

Although DLPH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DELPHI TECHNOLOGIES PLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

DELPHI TECHNOLOGIES PLC (DLPH)
Bid Ask Last Change Volume P/E Market Cap
20.00 22.37 21.77 +0.15 4.5M 6.0 1.9B

DLPH Dividend-Like Income Using Covered Calls

With DLPH at 21.77, 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% 0.65 0.2
5% 1.09 0.3
10% 2.18 0.6

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 DLPH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 30.00 0.05 25 0.2 7.63 (35.0%)
Dec 21 25.00 0.65 60 1.1 2.63 (12.1%)
5% Yield On DLPH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.25 25 1.0 2.63 (12.1%)
Dec 21 25.00 0.65 60 1.1 2.63 (12.1%)
10% Yield On DLPH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.25 25 1.0 2.63 (12.1%)
Dec 21 25.00 0.65 60 1.1 2.63 (12.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.EWZ dividend 7.IWM dividend   2.AMD dividend
3.EEM dividend 8.FXI dividend   3.TWTR dividend
4.PBR dividend 9.VXX dividend   4.TSLA dividend
5.SPX dividend 10.BAC dividend   5.UVXY dividend

Want more examples? DLNG Dividend | DLR Dividend